Which of the Following Includes the Possibility of Gains and Losses

question 186

Multiple Choice

Which of the following includes the possibility of gains and losses?

• A) Financial risk.
• B) Pure risk.
• C) Market risk.
• D) Liquidity risk.

---

Definitions:

Net Operating Income

A company's total profit from its operations, excluding non-operating income and expenses, such as taxes and interest.

Total Sales Dollars

The complete amount of revenue generated by a company from sales activities within a specific period, measured in currency.

Contribution Format

A type of income statement format that separates fixed and variable costs, emphasizing the contribution margin.

Income Statement

A financial report detailing a company's income, costs, and gains for a given time frame.