When a Business Makes a Loss as Shown by the Statement

question 4

True/False

When a business makes a loss as shown by the statement of profit or loss, the profit figure is credited to the capital account to show the owner's increased investment in the business.

---

Definitions:

Household Insecticide

Chemical substances used within homes to kill or repel insects.

Publicity Tools

Methods of obtaining nonpersonal presentation of an organization, product, or service without direct cost, such as news releases, news conferences, and public service announcements (PSAs).

Nonpersonal Presentation

The presentation of products or services through mass media channels, such as advertising, where direct interaction with the consumer is not involved.

Direct Cost

Expenses that can be directly traced to the production of a specific good or service, such as raw materials and labor.