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.

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Definitions:

Ethical Decision-Making

The procedure of scrutinizing and opting for alternatives that adhere to principles of ethics.

Rights Approach

A decision-making method based on using moral principles that least infringe on the entitlements of others.

Moral Principles

Fundamental beliefs about what is right and wrong that guide an individual's behavior and decision-making.

Entitlements

Rights or benefits that individuals are granted according to law or agreement.