Which of the Following Is Not an Example of a Flow

question 39

Multiple Choice

Which of the following is not an example of a flow variable?

• A) The amount of income that a person earns each month
• B) The amount of interest that a savings account earns each week
• C) The amount of money in a savings account
• D) The amount of taxes that a person pays each year
• E) All of these are flow variables

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Definitions:

Investment Center

A division or unit within a company that is responsible for its own revenues, expenses, and assets, and its performance is evaluated on its return on investment.

Generates Revenue

Activities or processes that result in the earning of income for a business through the sale of goods or services.

Incurs Costs

To undergo or suffer expenses during the execution of activities or operations.

Profit Center

A business segment or department within an organization that is responsible for generating its own revenue and thereby directly impacting profitability.