Which of the Following Is Not a Reason That Your

question 62

Multiple Choice

Which of the following is not a reason that your checking account balance might change from one month to another?

• A) Deposits to your account
• B) Cleared checks
• C) Purchasing new shoes with a credit card
• D) Bank fees

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, directly indicating the efficiency of core business activities.

Absorption Costing

A method of inventory costing that includes all manufacturing costs, both variable and fixed, in the cost of a product.

Variable Costing

An accounting method that only includes variable production costs (materials, labor, and overhead) in product cost calculations, excluding fixed costs.

Operating Income

Profit generated from a company's regular business operations, excluding expenses like taxes and interest.