A(n)________ Occurs When There Is a Concern That a Chosen

question 20

Multiple Choice

A(n) ________ occurs when there is a concern that a chosen act or activity will not generate sufficient revenues to cover operating costs and repay debt obligations.

• A)cash flow
• B)economic risk
• C)NPV
• D)capital budgeting

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue, indicating the company's overall profitability.

Statement of Cash Flows

A financial report that shows the cash generated and used by a company during a specific period, classified into operating, investing, and financing activities.

Operating Activities

Activities that are directly related to the primary operations of a company, such as manufacturing, distributing, marketing, and selling a product or service.

Retained Earnings

The amount of net income left over for the business after it has paid out dividends to its shareholders.