Which of the Following Is a True Statement

question 132

Multiple Choice

Which of the following is a true statement?

• A)Revenue decreases owners' equity and increases liabilities.
• B)Expenses increase owners' equity and decrease liabilities.
• C)Revenue increases owners' equity and expenses decrease owners' equity.
• D)Revenue decreases owners' equity and expenses increase owners' equity.

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Definitions:

Total Social Benefit

The total benefit to society from producing or consuming a good, including both private benefits and any external benefits.

Total Individual Benefit

The total value or satisfaction that an individual derives from consuming a particular quantity of goods or services.

Marginal Benefit

The supplementary enjoyment or advantage gained by consuming another unit of a good or service.

Marginal Social Benefit

The additional benefit received by society as a whole from the production or consumption of one more unit of a good.