Which of the Following Metrics Is Affected When a Business

question 70

Multiple Choice

Which of the following metrics is affected when a business makes prepayment of rent? ​

• A) ​Profitability
• B) ​Leverage
• C) ​Liquidity
• D) ​Contingency

Understand the principles of variable costing and its impact on net operating income.

Comprehend the calculation and comparison of unit product costs under variable costing and super-variable costing systems.

Understand the principles of super-variable costing and its effect on net operating income.

Calculate net operating income using variable and super-variable costing methods.

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Definitions:

Cash Controls

Procedures and policies that are implemented to manage and safeguard a company's cash transactions.

Theft

The act of stealing; specifically, the unlawful taking of another's property with the intent to permanently deprive the owner of it.

Cash Account

A financial record that tracks all cash receipts and disbursements within a business or organization.

Collections

The process of pursuing and receiving payments owed to a business from its customers or debtors.