The Operating Expense Section of an Income Statement for a Wholesaler

question 222

Multiple Choice

The operating expense section of an income statement for a wholesaler would not include

• A) freight-out.
• B) utilities expense.
• C) cost of goods sold.
• D) insurance expense.

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Definitions:

Diversification

A risk management strategy that involves spreading investments across various financial instruments, industries, or other categories to reduce exposure to any single asset or risk.

Risk-Averse Investors

Investors who prioritize minimizing risk over maximizing returns, often choosing safer, lower-yield investments.

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.

Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases.