Which of the Following Statements Is Correct

question 44

Multiple Choice

Which of the following statements is correct?

• A) Recording revenues results in an increase in assets or a decrease in liabilities.
• B) Recording revenues results in an increase in assets or a decrease in stockholders' equity.
• C)Recording expenses results in a decrease in assets or a decrease in liabilities.
• D)Recording expenses results in an increase in assets or an increase in liabilities.

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Definitions:

Deviation

Difference between expected payoff and actual payoff.

Expected Value

The weighted average of all possible values of a random variable, with the weights being the probabilities of each outcome.

Absolute Value

The distance of a number from zero on the number line, disregarding its sign.

Payoff

The outcome or return from an investment or decision, often expressed in terms of profit or loss.