Profit on the Income Statement Results in an Increase in Equity

question 7

True/False

Profit on the income statement results in an increase in equity on the balance sheet due to profitable operating activities over a period of time.

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Definitions:

Researcher's Manipulation

The deliberate alteration of variables by a researcher in an experiment to determine cause and effect relationships.

Independent Variable

A variable that is manipulated or changed in an experiment to determine its effect on a dependent variable.

Dependent Variable

In an experimental setting, the variable that is being tested and measured, which is expected to change as a result of manipulations in the independent variable.

Independent Variable

In experimental and research settings, the variable that is manipulated or changed to observe its effects on the dependent variable.