What Is the Bottom Line of a Cash Flow Statement

question 119

Multiple Choice

What is the bottom line of a cash flow statement?

• A)Net income
• B)Net cash flow
• C)Net worth
• D)Total cash inflow

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Definitions:

Variable Costs

These are costs that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.

Fixed Costs

Costs that do not change with the level of goods or services produced within a certain range; such costs are incurred regardless of business activity levels.

Break-even Point

The point at which total income matches total costs, leading to a situation where there is no gain or deficit.

Variable Cost

Costs that vary directly with the level of production or the volume of services rendered, such as raw materials and direct labor.