Which of the Following Statements Is False

question 116

Multiple Choice

Which of the following statements is false?

• A)An expense is a cost incurred to generate revenues.
• B)Selling assets at a gain does not result in earning revenue.
• C)Revenues are reported on the income statement as they are earned.
• D)Revenues result in an increase in net income and additional paid-in capital.

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Definitions:

Normal Good

A good for which demand increases when consumer income rises, and falls when consumer income decreases, all other factors being constant.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers.

Equilibrium Price

The price in the market where the amount of a product that consumers want to buy is the same as the amount available for sale, resulting in a balanced market situation.

Demand Schedules

Tabular representations showing the quantity of a good or service that consumers are willing and able to buy at various prices, over a specified period.