When Revenue Exceeds Expenses, an Organization's Net Worth

question 28

Multiple Choice

When revenue exceeds expenses, an organization's net worth

• A) Should increase
• B) Should decrease
• C) Should remain unchanged
• D) Cannot be predicted

---

Definitions:

GAAP

Generally Accepted Accounting Principles, a set of rules and standards for financial reporting and accounting practices in the United States.

Disclaimer of Opinion

An auditor's statement indicating inability to express an opinion on the fairness of financial statements due to limited information or uncertainties.

Adverse Opinion

An auditor's opinion indicating that a company's financial statements do not fairly represent its financial position, results of operations, or cash flows, often due to misstatements or non-compliance with accounting standards.

GAAP

GAAP (Generally Accepted Accounting Principles) are standardized guidelines for accounting practices and financial reporting in the United States.