The Statement That Is Not Correct Is

question 53

Multiple Choice

The statement that is not correct is:

• A) A loss is incurred when income < expenses.
• B) A profit is earned when income > expenses.
• C) A profit is earned when income < expenses.
• D) A loss is incurred when expenses > income.

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Definitions:

Differential Cost

Differential cost, also known as incremental cost, is the difference in total cost that will result from selecting one option over another in decision-making processes.

Unused Capacity

Represents the available production or service facility capability that is not being utilized to its full potential.

Condensed Income Statement

A simplified financial statement that highlights a company's revenues, expenses, and profits over a specific period, omitting detailed line items.

Discontinuance

This term refers to the cessation of operations or activities in a specific business segment or location.