A Decrease in Net Assets Arising from Peripheral or Incidental

question 46

Multiple Choice

A decrease in net assets arising from peripheral or incidental transactions is called a(n)

• A) capital expenditure.
• B) cost.
• C) loss.
• D) expense.

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Definitions:

Managing Partner

The executive responsible for overseeing the operations and strategic direction of a partnership or law firm.

Office Manager

An administrative employee who manages the day-to-day operations of a firm. In larger law firms, office managers are usually called legal administrators.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership of the company.

Professional Corporation

A legal structure allowing licensed professionals, such as lawyers, doctors, or accountants, to form a corporation with certain tax and liability advantages.