Which of the Following Statements Is True

question 117

Multiple Choice

Which of the following statements is true?

• A)If revenues are less than expenses,the company has a net loss and retained earnings decreases.
• B)If revenues are greater than expenses,the company has net income and contributed capital increases.
• C)If revenues are less than expenses,the company has a net loss and contributed capital increases to balance off the loss.
• D)If revenues are greater than expenses,the company has net income and retained earnings decreases.

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Definitions:

Obvious Exaggerations

Statements that stretch the truth in a clear and unmistakable manner, often used for emphasis or dramatic effect.

Vague Generalities

Statements or claims that are unspecific, lacking in detail, and broad, often intentionally so.

Puffery

Refers to exaggerated or boastful statements made by a seller about the quality or performance of a product, which are subjective and not legally binding.

Tainted Foods

Food products that have been contaminated or spoiled, making them unsafe to eat.