The Income Statement Presents a Summary of an Entity's Revenues

question 114

Multiple Choice

The income statement presents a summary of an entity's revenues and expenses for a period of time.Which of the following statements is TRUE?

• A) There is net income when total revenues are greater than total expenses.
• B) There is a net loss when total expenses are greater than total revenue.
• C) There is a net loss when withdrawals are made.
• D) Both A and B are true.

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Definitions:

Expectations

Beliefs or anticipation about the way events, behaviors, or things should happen or be.

Learned Helplessness

A psychological condition in which an individual becomes passive and unable to act to escape adverse situations due to previous exposure to uncontrollable events.

Pessimistic Explanatory Style

A tendency to explain negative events as permanent, pervasive, and personal causes, often linked to feelings of helplessness and depression.

Seligman

Martin Seligman is a psychologist known for his work on learned helplessness, positive psychology, and well-being.