The 'Bottom Line' in the Profit or Loss Statement Is

question 62

Multiple Choice

The 'bottom line' in the profit or loss statement is profit. The 'bottom line' in the statement of cash flows is:

• A) cash flow from operations.
• B) net increase (decrease) in the cash balance over the period.
• C) net cash at the end of the year.
• D) net cash at the beginning of the year.

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Definitions:

Cost Of Labor

The total amount incurred by a business to compensate its employees, including wages, benefits, and taxes.

Cost Of Capital

The rate of return a company must earn on its project investments to maintain its market value and attract funds.

Cost Of Labor

The total amount of wages and benefits paid to employees for their work.

Isocost Line

A graph that shows all possible combinations of capital and labor that can be purchased for a given total cost.