Which of the Following Statements Is False

question 116

Multiple Choice

Which of the following statements is false?

• A)An expense is a cost incurred to generate revenues.
• B)Selling assets at a gain does not result in earning revenue.
• C)Revenues are reported on the income statement as they are earned.
• D)Revenues result in an increase in net income and additional paid-in capital.

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Definitions:

Economies of Scale

Cost advantages that entities experience as their operational size or volume increases, leading to reduced costs per unit of output.

Remuneration

The compensation a person receives in return for performing work or services, including wages, salaries, and benefits.

Non-controlling Interest

Non-controlling interest is an ownership interest in a business entity by shareholders that are not the parent company or controlling shareholders, reflecting their share of the equity in a subsidiary.

Subsidiary

A business that is under the control of another business, referred to as the parent company, by holding a majority of its voting shares.