Variations in Operating Income Over Time Because of Variations in Unit

question 54

Multiple Choice

Variations in operating income over time because of variations in unit sales,price,cost margins,and/or fixed expenses are called:

• A)interest rate risk
• B)exchange rate risk
• C)purchasing power risk
• D)financial risk
• E)none of the above

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Definitions:

Unearned Revenue

Money received by a company for services or products which have not yet been delivered or performed.

Advance Subscription Sales

Revenue received from customers for subscriptions that are paid for before the subscription period begins.

Quarterly Journals

Publications that release issues on a quarterly basis, often academic or professional in nature, covering specific field subjects.

Journalized

Refers to the process of recording financial transactions in the chronological order of their occurrence in a company's journal, which is a primary accounting record.