The Financial Statement That Describes Where a Company's Cash Came

question 9

Multiple Choice

The financial statement that describes where a company's cash came from and where it went during the period is the

• A) statement of financial position
• B) statement of cash flows
• C) balance sheet
• D) income statement
• E) statement of changes in equity

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Definitions:

Fixed Costs

Costs that remain constant regardless of how much is produced or sold, including expenses like rent, salaries, and insurance.

Net Income

The amount of profit that remains after all operating expenses, taxes, and costs have been subtracted from total revenue, essentially the bottom line.

Break-Even Point

The point at which total costs and total revenue are equal, resulting in neither profit nor loss.

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance.