Which of the Following Statements Is Correct Regarding the Concept

question 8

Multiple Choice

Which of the following statements is correct regarding the concept of environmental accounting?

• A) It is a method of incorporating the costs of depleting the company's assets into the financial statements of the company.
• B) It has been used to show the profits of a company.
• C) It does not apply to government organisations.
• D) It is a part of the ASX Listing Rules.

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Definitions:

Owner's Equity

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

Net Income

The total earnings of a company after deducting all expenses and taxes from total revenue.

Drawings

Amounts withdrawn by the owner(s) of a business for personal use.

FASB

The Financial Accounting Standards Board (FASB) is a private organization that establishes financial accounting and reporting standards for companies and nonprofit organizations in the United States.