Which of the Following Statements Is Not True

question 57

Multiple Choice

Which of the following statements is not true?

• A) The profit of an entity is calculated as income less expenses.
• B) A withdrawal of cash for private use by the owner is shown as a reduction of equity in the balance sheet.
• C) Equity can be thought of as the owner's claim to the income of the entity after deducting all liabilities.
• D) Income can be measured not only be cash, but by receipt of other assets.

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Definitions:

General Affect

General affect pertains to the overall mood or emotional tone an individual typically exhibits.

Facial Expressions

Visible changes in the face that communicate emotional states or reactions to others.

Two-Factor Theory

A psychological theory proposing that emotional experiences arise from a combination of a state of physiological arousal and a cognitive interpretation of the situation.

Four-factor Model

A framework in financial economics used to describe the returns of a portfolio or asset in relation to four factors, including market risk and three other factors that influence returns.