When You Engage in Critical Thinking, You

question 36

Multiple Choice

When you engage in critical thinking, you:

• A) make quick decisions.
• B) consider information thoughtfully.
• C) look at only one side of an issue.
• D) think irrationally.

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Definitions:

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the owner's claim on the business assets.

Owner Drawings

Owner Drawings are withdrawals of business assets by the owner(s) for personal use, affecting the owner's equity account but not considered business expenses.

Revenues

The total amount of money received or expected to be received from the sale of goods or services, as well as other financial sources.

Net Income

The company's ultimate income after expenses and taxes have been taken away from total earnings.