A company records the following financial
data:

Cash on hand: R5 million

Annual revenue: R20 million

Annual expenses: R15 million

Machinery and equipment: R10 million Which of the following statements best explains the classification of these figures?

Question

A company records the following financial
data:

Cash on hand: R5 million

Annual revenue: R20 million

Annual expenses: R15 million

Machinery and equipment: R10 million Which of the following statements best explains the classification of these figures?

Accepted Answer

Cash on hand and machinery are stocks, while revenue and expenses are flows.

Answer

All the values listed are flow variables.

Answer

All the values listed are stock variables.

Answer

Revenue and expenses are stocks, while cash and machinery are flows.

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