The Amount of Money a Company Makes Is Where

question 182

Multiple Choice

The amount of money a company makes is where P is the profit in dollars R is the revenue in dollars and C is the costs in dollars. If the costs are $5000 and the profit is what is the revenue?

• A) $3000
• B) $7000

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Definitions:

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including income statement, balance sheet, and cash flow statement.

Permanent/Temporary

Terms used to differentiate between accounts that remain open over fiscal periods (permanent) and those closed at the end of a period (temporary).

Normal Balance

The side of an account (debit or credit) on which increases in the account are recorded, depending on the account type.

Financial Statement

Reports that provide an overview of a company's financial condition at a specific time, including income statement, balance sheet, and cash flow statement.