Fixed Expenses

question 53

Multiple Choice

Fixed expenses:

• A) Create risk.
• B) Can be an advantage when a company is growing.
• C) Include interest expense.
• D) Do not fluctuate with changes in sales.
• E) All of these.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business.

Withdraw

The act of removing funds from an account, typically from a bank or investment.

Investment

Allocation of resources, usually money, into a vehicle expected to generate income or profit, such as stocks, bonds, or real estate.

Return on Investment

A measure of the financial gain or profitability of an investment relative to its cost, expressed as a percentage.