Which of the Following Points Out a Flaw in Kershner's

question 90

Multiple Choice

Which of the following points out a flaw in Kershner's reasoning?

• A) Kershner is not accounting for all of the possible sources of revenue for the company.
• B) Kershner is not including owners' equity as part of sales revenue.
• C) Income statements are not as important as balance sheets in determining a company's fiscal health.
• D) Many employees are not happy with the direction the company is headed.
• E) Kershner is not accounting for the contribution that expenses will make to the income statement.

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Definitions:

Triangle Arbitrage

A risk-free profit that arises from discrepancies between three foreign currencies in the foreign exchange market.

Profit

The financial gain realized when the revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

British Pounds

The official currency of the United Kingdom, also known as sterling, symbolized by £.

Cash Inflows

Funds being received by a company or individual, which could originate from sales, financing, or investments.