PrepTest 47, Section 2, Question 11
In contemplating major purchases, businesses often consider only whether there is enough money left from monthly revenues after paying monthly expenses to cover the cost of the purchase. But many expenses do not occur monthly; taking into account only monthly expenses can cause a business to overexpand. So the use of a cash-flow statement is critical for all businesses.
In contemplating major purchases, businesses often consider only whether there is enough money left from monthly revenues after paying monthly expenses to cover the cost of the purchase. But many expenses do not occur monthly; taking into account only monthly expenses can cause a business to overexpand. So the use of a cash-flow statement is critical for all businesses.
In contemplating major purchases, businesses often consider only whether there is enough money left from monthly revenues after paying monthly expenses to cover the cost of the purchase. But many expenses do not occur monthly; taking into account only monthly expenses can cause a business to overexpand. So the use of a cash-flow statement is critical for all businesses.
In contemplating major purchases, businesses often consider only whether there is enough money left from monthly revenues after paying monthly expenses to cover the cost of the purchase. But many expenses do not occur monthly; taking into account only monthly expenses can cause a business to overexpand. So the use of a cash-flow statement is critical for all businesses.
Which one of the following, if true, most strengthens the argument?
Only a cash-flow statement can accurately document all monthly expenses.
Any business that has overexpanded can benefit from the use of a cash-flow statement.
When a business documents only monthly expenses it also documents only monthly revenue.
A cash-flow statement is the only way to track both monthly expenses and expenses that are not monthly.
When a business takes into account all expenses, not just monthly ones, it can make better decisions.
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