The Difference Between a Classified Balance Sheet and One That

question 208

True/False

The difference between a classified balance sheet and one that is not classified is that the classified one has subheadings.

---

Definitions:

ROI

Return on Investment, a performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Contribution Margin Ratio

The percentage of sales revenue remaining after variable costs are subtracted, indicating how much contributes to covering fixed costs and generating profit.

Fixed Expenses

Costs that remain constant regardless of the level of production or business activity.

Sales

The total revenue generated from goods or services sold by a company during a specific period.