Which of the Following Sections from the Statement of Cash

question 12

Multiple Choice

Which of the following sections from the statement of cash flows includes activities that create revenue, expenses, gains and losses?

• A) The investing section
• B) The financing section
• C) The operating section
• D) The noncash investing and financing section

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Definitions:

Contribution Margin

The amount by which sales revenue exceeds variable costs, used to cover fixed costs and to generate profit.

Sales Quantity

The total number of units of a product or service sold within a specific period.

Variable Cost

A corporate expense that changes in proportion with the level of output or sales.

Fixed Costs

Charges that stay the same no matter how much is manufactured or sold, including rental fees, employee pay, and protection premiums.