In the Statement of Cash Flows,retained Earnings Are Reported as Two

question 24

Multiple Choice

In the statement of cash flows,retained earnings are reported as two separate line items,which are __________ and ___________.

• A)revenues and expenses
• B)assets and liabilities
• C)depreciation and amortization
• D)net profits and taxes
• E)none of the above

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Definitions:

Break-Even Point

The level of sales at which total revenues equal total costs, resulting in no net loss or gain.

Sales Mix

The composition of a company’s product or service sales, showing the relative proportions of each product or service sold.

Net Income

The total revenue minus total expenses, indicating the profitability of a company over a specific period.

Contribution Margin Ratio

The ratio of Contribution Margin to Sales Revenue, measuring the percentage of each sales dollar available to cover fixed costs and profit.