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:

Flashbulb Memory

Highly detailed, exceptionally vivid 'snapshot' of the moment and circumstances in which a piece of surprising and consequential news was heard.

Accuracy Trust

The degree of confidence in the accuracy of a source or information.

Retroactive Interference

A phenomenon in which subsequently learned material lowers the probability of recalling earlier learned material.

Recall

is a measure of memory in which a person must retrieve information learned earlier, as on a fill-in-the-blank test.