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AB Distributors is a company that serves as a shipping intermediary for other companies. Its sales revenue has increased from the previous year. Jonathan, a sales manager at AB, says, "Since the company has increased its revenue, it is now more profitable." Another manager at AB Distributor, Shawna, suggests that if the company's revenue had not increased, it would not have been able to increase its profits. Which of the following points out a flaw in Shawna's reasoning?
Interest Receivable
The amount of interest that has been earned but not yet received by the lender.
Gain on Sale
The financial profit earned from selling an asset for more than its book value.
Interest Revenue
Earnings generated by providing loans or placing money into financial vehicles that accrue interest.
Temporary Investment
Short-term investments made by a company to earn a return on idle cash without impacting its liquidity.
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