Which of the Following Statements Does Not Accurately Describe the Effect

question 117

Multiple Choice

Which of the following statements does not accurately describe the effect of the sale of inventory at a profit on the financial statements?

• A)Income from operations and current assets both increase.
• B)Operating income and gross profit both increase.
• C)Net income and earnings per share both increase.
• D)Current assets do not change and stockholders' equity increases.

---

Definitions:

Esteem Needs

A concept in Maslow's hierarchy of needs referring to the human desire for respect, status, recognition, and self-esteem.

Affiliation Needs

The basic human requirement for interpersonal relationships and belonging to groups or communities.

Security Needs

Security Needs refer to the human requirement for safety and stability in one’s physical and emotional environment, as identified in Maslow's hierarchy of needs.

Two-Factor Model

The Two-Factor Model, often related to motivation or emotion, identifies two distinct factors that contribute to an individual's psychological state or behaviors.