All of the Following Statements Are True, EXCEPT

question 59

Multiple Choice

All of the following statements are true, EXCEPT

• A) to analyze operations properly you need both the Statement of Income and the Statement of Cash Flows.
• B) in the long run total profits and net cash flows will be very similar.
• C) the Statement of Cash Flows considers events that the Statement of Income does not.
• D) the Statement of Cash Flows and the Statement of Income both cover the period of a year because profits and cash flows are very similar over the period of a year.

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Definitions:

Input

Resources such as labor, materials, and capital used in the production of goods and services.

Average Fixed Cost

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.

Output

The total quantity of goods or services produced by a firm or economy over a specific period.

Marginal Product

Refers to the additional output that is produced by adding one more unit of a specific input, assuming all other inputs are held constant.