Which of the Following Concepts Assume That Information Flows from the Income

question 92

Multiple Choice

Which of the following concepts assume that information flows from the income statement through the statement of retained earnings,the statement of owners' equity to the balance sheet?

• A) Articulate concept
• B) Going concern concept
• C) Opportunity cost concept
• D) Leveraging concept

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Definitions:

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, reflective of the capital owned by the owners or shareholders.

Personal Expenses

Out-of-pocket expenses related to the individual needs of a person rather than business expenses.

Operations

Activities and tasks involved in the day-to-day running of a business or system, focusing on producing and delivering products or services.

Asset Decrease

A reduction in the value or quantity of an asset, which can affect a company's balance sheet and overall financial health.