Which of the Following Statements Best Describes the Term "Revenues

question 16

Multiple Choice

Which of the following statements best describes the term "revenues"?

• A)Revenues represent an outflow of assets resulting from the sale of goods or services.
• B)Revenues represent assets received from the sale of products or services.
• C)Revenues represent assets used or consumed in the sale of products or services.
• D)Revenues represent the dollar amount of bonds sold to the public.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the fixed versus variable costs structure of a company.

Depreciation Expense

Strategically spreading out the cost of a concrete asset over the course of its serviceable life.

Operating Cash Flow

A measure of the cash generated by a company's normal business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales volumes, reflecting the proportion of fixed costs in a company's cost structure.