One Manager (Adam)says That the Income Statement Should Be Strong

question 182

Multiple Choice

One manager (Adam) says that the income statement should be strong this year because the company has achieved a high level of sales revenue.Another manager (Eve) says that even with strong sales revenue,the income statement might not look particularly good.If the following facts were known,which one would strengthen Adam's argument?

• A) Total operating expenses were high this year.
• B) Rent expenses were 30 percent higher than last year.
• C) Compared to gross sales,the cost of goods sold was low.
• D) The company is smaller than its competitors.
• E) The company has valuable fixed assets.

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Definitions:

Circumscription

Process by which children narrow their occupational alternatives by eliminating those that are not acceptable in prestige or sex type.

Compromise

Process by which preferred alternatives are sacrificed because they are inaccessible.

Gottfredson's

Refers to a theory of career development proposed by Linda Gottfredson, which emphasizes the process of circumscription and compromise in career choice.

Holland's

Refers to Holland's Theory, emphasizing the alignment between personal interests, capabilities, and the characteristics of professional environments.