An Outstanding Check Is a Check Issued by the Company

question 42

True/False

An outstanding check is a check issued by the company and recorded on its books,but not yet paid by its bank.

---

Definitions:

Contribution Margin Ratio

The percentage of each sale that contributes to covering fixed costs, calculated as contribution margin divided by sales revenue.

Fixed Expenses

Expenditures that stay unchanged despite differences in the volume of production or sales, covering items like rental fees, payroll, and coverage costs.

Sales

The exchange of goods or services for money, quantifying the performance and profitability of a business.

Operating Assets

Assets that are used for the day-to-day operations of a business, contributing to its ability to generate revenue.