Revenues and Expenses Affect Stockholders' Equity; Therefore, Net Income Is

question 25

Multiple Choice

Revenues and expenses affect stockholders' equity; therefore, net income is then transferred to:

• A) the income statement.
• B) retained earnings.
• C) the balance sheet.
• D) none of the above.

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Definitions:

Functional Departmentation

The process of organizing a business into distinct departments, each responsible for a specific function or area, such as marketing or finance.

Centralized

The concentration of control, authority, or decision-making power within a singular or limited locale or organization hierarchy.

Communication

The process of sharing information, ideas, feelings, and messages through speech, writing, signals, or behaviors.

Effort Duplication

The unnecessary repetition of work or tasks, often resulting in wasted resources and time.