Which of the Following Statements Is Not True

question 15

Multiple Choice

Which of the following statements is not true?

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

Distinguish between correlation and causation in scientific studies.

Identify experimental design elements, including variables, biases, and methodologies to control for these.

Appreciate the role of statistical measures, including standard deviation and correlation coefficients, in interpreting data.

Understand the significance of sample size and randomness in achieving representative samples.

---

Definitions:

Note Receivable

A written promise for amounts to be received by a debtor, typically including interest amounts.

Interest Earned

The income received from investing in interest-bearing financial instruments, such as bonds, loans, or savings accounts.

Balance Sheet

An accounting record that presents the total value of a corporation's assets, its obligations, and the equity belonging to shareholders, reflecting the company’s financial state at a specific time.

Prepaid Expense

An expense that has been paid in advance and is considered an asset until it is actually used or consumed.