The 'Bottom Line' in the Statement of Profit or Loss

question 46

Multiple Choice

The 'bottom line' in the statement of profit or loss and other comprehensive income is profit. The 'bottom line' in the statement of cash flows is:

• A) cash flow from operations.
• B) net cash at the end of the year.
• C) net cash at the beginning of the year.
• D) net increase (decrease) in the cash balance over the period.

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Definitions:

Operating Expenses

Costs that a business incurs through its normal business operations, such as wages, rent, and utilities.

Wholesaler

A person or company that sells goods in large quantities at low prices, typically to retailers.

Retailer

A business that sells goods or services directly to consumers.

Ginger Ale

A carbonated soft drink flavored with ginger.