In Its December 31, 2009, Balance Sheet, Lake Would Report

question 97

Multiple Choice

In its December 31, 2009, balance sheet, Lake would report:

• A)Deferred gross profit of $700,000.
• B)Deferred gross profit of $600,000.
• C)Installment receivables (net) of $700,000.
• D)Installment receivables (net) of $400,000.As of 12/31/2009, the installment receivable would be as follows:

---

Definitions:

Opportunity Cost

Opportunity cost is the cost of foregoing the next best alternative when making a decision, representing the benefits that could have been gained by choosing the alternative option.

Opportunity Cost

The expense associated with not choosing the second-best option when deciding.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.

Point E

typically used in the context of graphs, it can represent a specific equilibrium point or any designated point of interest.