Which of the Following Statements Is True

question 51

Multiple Choice

Which of the following statements is true?

• A) The profit of an entity is always represented by an increase in cash.
• 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:

Verbal Communication

The use of words and language to convey messages or information between individuals, either spoken or written.

Active Listening

Encourages people to say what they really mean.

Barriers

Obstacles or impediments that prevent or hinder progress or communication.

Interpersonal Issues

Problems or conflicts arising from interactions between individuals in a workplace or social setting.