Which Two Financial Statements Are Used to Assess Profitability

question 49

Multiple Choice

Which two financial statements are used to assess profitability?

• A)Cash flow and balance sheet
• B)Income statement and cash flow
• C)Income statement and balance sheet
• D)Cash flow and owner's equity

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Definitions:

Productivity

A measure of the efficiency of production, usually defined as the ratio of outputs produced to inputs used.

Opportunity Costs

The cost of foregoing the next best alternative when making a decision or choosing one option over another.

Opportunity Cost

The financial consequence of rejecting the subsequent optimal choice when deciding.

TV Commercials

Short segments on television intended to persuade viewers to buy products or services.