The Statement of Cash Flows ________

question 106

Multiple Choice

The statement of cash flows ________.

• A)describes the financial situation of a company at a specific point in time
• B)is a summary of all of the revenues minus all of the expenses for an accounting period
• C)shows the changes that took place in the amount of shareholders' equity during a period
• D)is a list of all the cash collected and cash paid during a period

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Definitions:

Fixed Costs

Costs that do not change with the level of output or sales within a certain period of time.

Break-Even Point

The production level or sales volume at which total revenues equal total expenses, resulting in zero profit or loss.

Warehouse Rent

The cost incurred for storing goods in a warehouse.

Mixed Cost

An expense that contains both fixed and variable cost elements, changing in total with increases or decreases in production or sales volume.