There Are Four Primary Financial Statements That Are Used to Measure

question 66

Multiple Choice

There are four primary financial statements that are used to measure the performance of a firm. Which of the choices below are included among these four?

• A) The balance statement and income statement
• B) The income sheet and statement of retained earnings
• C) The statement of cash flow and statement of balance
• D) The balance sheet and statement of cash flow

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Definitions:

Profit Center

A branch or division of a company that is directly responsible for generating its own revenue and profits.

Cost Of Goods Sold

Direct expenditures involved in producing the products a company sells, inclusive of materials and labor.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting operating expenses, interest, and taxes.

Profit Center

A branch or division of a company that is directly responsible for generating profit, measured by its success in contributing to the company's bottom line.