Which of the Following Is Not Reported on the Income

question 90

Multiple Choice

Which of the following is not reported on the income statement of a manufacturing firm?

• A) cost of goods sold
• B) administrative and selling expenses
• C) work in progress
• D) marketing and distribution costs

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Definitions:

Mutually Exclusive

Mutually exclusive projects or events are those that cannot occur simultaneously; choosing one option means the other cannot be selected.

NPV

Net Present Value, a method used in capital budgeting to assess the profitability of an investment or project.

Payback

Payback is the period of time required for the return on an investment to "pay back" the sum of the original investment, often used as a measure of investment risk.

Cash Flow

Cash flow signifies the net amount of cash and cash-equivalents being transferred into and out of a business, crucial for assessing its liquidity, flexibility, and overall financial performance.