s Which statement is correct? A. Net loss results when revenue exceeds expenses. B. Net income results when revenue exceeds expenses. C. The Balance Sheet shows Net Income. D. Net Income decreases Owner's Equity (Owner's Capital).

The accounting equation, Assets = Liabilities + Equity, reflects the fundamental balance between…

Answered: Which statement is correct? A. Net loss…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 20MC: Which of the following is a measurement of earnings that represents the profit before interest,...

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Owner's equity Select one: a. The resulting amount when total liabilities are subtracted from total assets b. When total liabilities are added to total assets c. None of Them d. The resulting amount when total revenue are subtracted from total cost of sales
The resulting amount when total liabilities are subtracted from total assets is known as Select one: O a. Total expenses O b. Net income or net loss Oc. Total revenue O d. Owner's equity
Capitalizing a cost involves increasing what type of account?a. Liabilityb. Expensec. Stockholders’ equityd. Asset
Which is FALSE ? A. Assets = Owner’s Equity + Liabilities. B. Assets – Liabilities = Owner’s Equity. C. Assets + Liabilities = Owner’s Equity. D. Assets – Owner’s Equity = Liabilities.
Net income is gross profit less other income.O financing expenses.O operating expenses.O other revenues and losses.
Owner’s Equity is increased by net income and an investment by the owner True or False?
The accounting equation is expressed as ________.A. Assets + Liabilities = Owner’s EquityB. Assets – Noncurrent Assets = LiabilitiesC. Assets = Liabilities + Investments by OwnersD. Assets = Liabilities + Owner’s Equity
Which should be subtracted from the net income when using the indirectmethod? A. Loss on sale of investmentB. Amortization of patentC. Increase in accounts receivableD. Increase in accounts payable
A decrease in economic benefits or decrease in assets or increase in liability resulting in decrease in equity is termed as. a. Capital b. Income c. Expense d. Liability
The profit that is distributed to the shareholders is called as a. Investment. b. Retained earnings c. Expense. d. Dividends
SLO-3.2. Which of the following is NOT a type of owner's equity? ORent Income OWithdrawls OOwner's Investment OAccounts Payable
The numerator of the return on total assets is a. net income b. net income plus tax expense c. net income plus interest expense d. net income minus preferred dividends

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Which statement is correct? A. Net loss results when revenue exceeds expenses. B. Net income results when revenue exceeds expenses. C. The Balance Sheet shows Net Income. D. Net Income decreases Owner's Equity ( Owner's Capital).