Which of the Following Statements Is True

question 2

Multiple Choice

Which of the following statements is true?

• A)When operating income is positive,revenue is greater than expenses.
• B)When net income is negative,retained earnings decrease,all other things being equal.
• C)When net income is positive,Shareholders' equity increases,all other things being equal.
• D)All of the above.

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Definitions:

Additional Compensation

Extra payment or remuneration provided to an employee or contractor beyond their basic salary or fees, often for achieving specific targets or for extra duties.

Small Partnerships

Business arrangements involving a limited number of partners collaborating in a venture, typically characterized by less regulatory requirements and personal liability.

Unanimous Partners' Agreement

A legal agreement among all partners in a business, requiring complete agreement on any decision or action.

Large Contracts

Agreements, typically involving substantial financial values or significant responsibilities, used in major transactions or projects.