Which of the Following Statements Is Not True

question 101

Multiple Choice

Which of the following statements is not true?

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

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Definitions:

Economic Agreements

Formal arrangements between parties, often nations or businesses, regarding the conduct of economic activity, including trade, investment, and regulation.

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation, representing the residual asset value once liabilities have been subtracted.

Public Offering

The process of issuing new securities for sale to the public, usually done to raise capital for expansion or other business activities.

Mature Company

A company that has reached a stage in its life cycle where growth slows to the industry or economy's average, often characterized by a stable customer base and predictable financial returns.