What Is the Name Given to the Sum of the Subtotals

question 28

Multiple Choice

What is the name given to the sum of the subtotals of the three sections (operating activities,investing activities,financing activities) of the statement of cash flows?

• A)Net income for the period
• B)The change in the cash account balance between the beginning and ending of the period
• C)The ending cash balance
• D)The amount of cash inflow for the period

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Definitions:

Accounting Rate of Return

A metric used to measure the profitability of investments, calculated by dividing the average net income by the initial investment cost.

Break-Even Time

Break-even time is the period it takes for a business or project to become financially viable, covering all its costs and starting to generate profit.

Lowest Rank

Refers to the position, level, or grade of an entity or individual that is at the bottom of a hierarchical system.

Payback Periods

The length of time required to recoup the initial investment in a project or investment, measured in years or months.