The Difference Between a Firm's Revenue and Its Operating Expenses

question 96

True/False

The difference between a firm's revenue and its operating expenses is the firm's operating income.

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Definitions:

Collections

The process of receiving payments from customers or the amounts collected on outstanding accounts receivable.

Cash Receipts

The total amount of cash collected by a business over a period of time, including revenues and other forms of cash inflows.

Cash Disbursements

Money paid out by a company for various purposes, including operating expenses, investment transactions, and other payouts.

Collections

The process of gathering or accumulating something, often refers to the process of obtaining payments from customers.