Which of the Following Is NOT One of the Financial

question 11

Multiple Choice

Which of the following is NOT one of the financial statements that must be produced by a public company?

• A) the balance sheet
• B) the income statement
• C) the statement of cash flows
• D) the statement of activities

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Definitions:

Operating Leverage

An indicator of the way in which growth in revenue results in an increase in operating profit, revealing the ratio of fixed to variable expenses within a business.

Net Operating Income

The total profit of a company after operating expenses are deducted, but before taxes and interest payments.

Sales Increase

It refers to the upward change in the number of products sold or the value of sales over a specific period.

Percentage of Sales

The percentage of sales method is a financial forecasting model that estimates various financial figures as a fixed percentage of predicted sales.