Which Financial Statement Matches Asset Increases from Operating a Business

question 119

Multiple Choice

Which financial statement matches asset increases from operating a business with asset decreases from operating the business?

• A) statement of changes in equity
• B) balance sheet
• C) income statement
• D) statement of cash flows

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Definitions:

Deontological Theory

A moral philosophy where the morality of an action is based on its adherence to rules or duties, rather than the consequences of the action.

Utilitarian Theory

A normative ethical theory that suggests that the best action is the one that maximizes utility, often defined as maximizing happiness and reducing suffering.

Deontological Theory

An ethical framework that judges the morality of an action based on its adherence to a set of rules, rather than the consequences of the action.

Profit Maximization Theory

An economic principle suggesting that the goal of a business is to increase net income by managing revenue and costs.