If Total Revenues Are the Same as Total Expenses, Then

question 24

Multiple Choice

If total revenues are the same as total expenses, then a company has which of the following?

• A) a decrease in shareholders' equity.
• B) a loss.
• C) neither a profit nor a loss.
• D) a profit.

---

Definitions:

Reinvested

The process of using earned profits or dividends to purchase additional shares or assets, rather than distributing them as dividends.

Investment

Allocation of resources, such as time, money, or effort, in hope of future benefits or returns.

Future Value

The eventual worth of an asset or cash that matches the value of a predetermined present sum.

Compounding

The process where the value of an investment increases because the earnings on an investment, both capital and interest, earn interest as time passes.