To Get a Feel for the Impact on Profits of Various

question 55

Multiple Choice

To get a feel for the impact on profits of various changes in costs and volume levels,management should perform:

• A) cost benefit analysis
• B) sensitivity analysis
• C) cost analysis
• D) profitability analysis

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Definitions:

Adjusted Trial Balance

A financial statement listing all accounts and their final balances after adjusting entries are made, ensuring the total debits equal total credits.

Adjusting Entries

Bookkeeping entries recorded at the close of a fiscal period to assign earnings and outlays to the timeframe in which they happened.

Adjusting Entries

Accounting records created during a period's close to distribute revenues and expenses to their rightful temporal occurrences.

Cash

Money in the form of currency that can include bank notes and coins, available for transactions or savings.