If Ol' Fashioned Toys' Revenues Are Less Than Its Expenses

question 31

Multiple Choice

If Ol' Fashioned Toys' Revenues are less than its Expenses during the accounting period:

• A) owner's withdrawals increase net income.
• B) net income causes Liabilities to decrease.
• C) the business will incur a net loss.
• D) owner's withdrawals increase Owner's Equity.

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Definitions:

Mesoderm

Cells of the inner cell mass of the embryo that give rise to the muscles, the bones, the circulatory system, and the inner layers of the skin.

Inner Cell Mass

A group of cells inside the early embryo that will eventually give rise to the organism's body.

Bones and Muscles

Structures that work together in the human body to provide support, protect internal organs, and enable movement.

Umbilical Cord

A flexible cord-like structure connecting a fetus to the placenta, supplying oxygen and nutrients while removing waste.