Which of the Following Statements Is Incorrect

question 9

Multiple Choice

Which of the following statements is incorrect?

• A)Revenue expenditures decrease net income.
• B)Capital expenditures decrease assets.
• C)Ordinary repairs and maintenance are considered revenue expenditures.
• D)Additions and improvements are considered capital expenditures.

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Definitions:

Non-controlling Interest

The portion of equity interest in a subsidiary not attributable to the parent company.

Retained Earnings

The portion of net profits not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.

Profit After Tax

The net income a company remains with after all taxes have been subtracted from its total revenue.

BCVR Entries

Book value to consideration ratio entries, used in accounting to adjust the values of assets and liabilities during acquisitions.