The First Law of Thermodynamics States That _____

question 31

Multiple Choice

The first law of thermodynamics states that _____.

• A) in a perfect engine all of the heat is converted to mechanical work
• B) torque is a measure of work
• C) resistance is work that results from burning fuel
• D) energy cannot be created or destroyed

---

Definitions:

Retained Earnings

Profits that a company retains at the end of a fiscal period, which are not distributed to shareholders as dividends but are reinvested in the business.

Remeasured

The process of adjusting the book value of a foreign currency transaction on the financial statements to reflect the current exchange rate.

Depreciation Expense

An accounting method used to allocate the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Current Rate Method

A method of foreign currency translation where all financial statement line items are translated at the current exchange rate.