Which of the Following Statements Is Not True

question 101

Multiple Choice

Which of the following statements is not true?

• A) Expenses increase owner's equity.
• B) Expenses have normal debit balances.
• C) Expenses decrease owner's equity.
• D) Expenses are a negative factor in the computation of net income.

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Definitions:

Product-level Activity

Activities and costs associated with a specific product rather than the business as a whole.

Machine Setup

Machine setup refers to the process of preparing and adjusting machinery to perform a specific task or operation in manufacturing.

Advertising

A method used by businesses to promote their products or services through various media to attract new customers or retain current ones.

Plantwide Overhead Rate

A single overhead absorption rate used throughout a manufacturing facility to allocate overhead costs to products.