The Extra Expense Incurred by a Business to Stay in Operation

question 3

Multiple Choice

The extra expense incurred by a business to stay in operation following a fire is an example of a(n)

• A)fundamental risk.
• B)speculative risk.
• C)direct loss.
• D)indirect loss.

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Definitions:

Statement Of Cash Flows

A financial document that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquid assets available for running its operations.

Discontinued Operations

Parts of a company's core business or units that have been sold, disposed of, or ceased operations, which are reported separately in financial statements.

Interim Report

A financial statement that reports a company's financial performance for a period shorter than a fiscal year, often quarterly.