In the Following Expression, Which Is (Are) the Dependent Variable(s)

question 18

Multiple Choice

In the following expression, which is (are) the dependent variable(s) ?
PROFIT = REVENUE - EXPENSES

• A)Profit
• B)Revenue
• C)Expenses
• D)(b) and (c)

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Definitions:

Operating Income

The profit realized from a business's operations, after deducting operating expenses like wages and cost of goods sold, but before interest and taxes.

Interest Expense

The cost incurred by an entity for borrowed funds, typically expressed as a yearly rate.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its debtors, typically used to assess the efficiency of a company's credit policies.

Credit Sale

A transaction where goods or services are provided to a customer with the agreement that payment will be made at a later date.