Reducing Expenses to Increase Operating Profit Is Representative of ________

question 214

Multiple Choice

Reducing expenses to increase operating profit is representative of ________.

• A) safeguarding assets
• B) following company policies
• C) promoting operational efficiency
• D) ensuring accurate, reliable accounting records

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Definitions:

Sources and Uses of Cash

A financial statement or section that summarizes where a company's cash comes from (sources) and where it is spent (uses), providing insight into its financial health.

Assets and Liabilities

Assets are resources owned by a company that have economic value, while liabilities are the company's legal debts or obligations.

Income and Expenses

Refers to the money received (income) and the costs incurred (expenses) by an individual or business, which determine the net profit or loss.

Free Cash Flow (FCF)

The amount of cash that a company generates after accounting for capital expenditures needed to maintain or expand its asset base.