Under Current Accounting Principles,how Is Net Income on the Income

question 51

Multiple Choice

Under current accounting principles,how is net income on the income statement measured?

• A)Net change in owners' equity during the period
• B)Excess of revenues over expenses during the period
• C)Net change in the cash balance during the period
• D)Excess of revenues over expenses less any dividends paid during the period

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Definitions:

Molecule

A molecule is the smallest unit of a chemical compound that retains its chemical properties, consisting of two or more atoms bonded together.

Stable

Refers to an object, substance, or system that remains unchanged or resists change in conditions or under pressure.

Electrically Charged

A state of having an imbalance in the number of protons and electrons, resulting in a positive or negative electrical charge.

Electrically Neutral

A state in which an object or system has an equal number of positive and negative charges, resulting in no overall net charge.