The True Statement Is

question 44

Multiple Choice

The true statement is:

• A)The profit of an entity is always represented by an increase in cash of the same amount.
• B)A withdrawal of cash for private use by the owner is shown in the income statement as an expense.
• C)Equity can be thought of as the owner's claim to the assets of the entity after deducting all liabilities.
• D)Profit can be calculated as; Net assets at the end of the year less net assets at the beginning of the year less drawings.

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Definitions:

Arousal

A state of physiological and psychological readiness or alertness, often in response to stimuli.

Context

The circumstances or setting surrounding an event, statement, or idea, which can significantly affect its meaning and understanding.

James-Lange Theory

A theory of emotion that suggests emotions are the result of physiological responses to external stimuli.

Running Away

the act of quickly leaving or escaping a situation, typically to avoid a negative outcome, danger, or to pursue safety.