Which of the following statements regarding owner's capital is not valid?
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Which of the following statements regarding owner's capital is not valid?
a. It is increased by investments to the business by the owner.
b. It is increased by income earned by the business.
c. It is increased by distributions to the owners (drawings by owners).
d. It is decreased by expenses incurred by the busines
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- ASAPWhich statement is incorrect? a. Under the transactions approach, net income is computed as the excess of income over expenses b. Under the capital maintenance approach, net income is computed as the excess of ending capital over beginning capital, excluding the effect of investments and withdrawals by owners. c. Unusual and infrequent items of expenses should be presented in in the income statement as a component of income from continuing operation. d. The single statement of comprehensive income shows a detailed presentation of all income and expenses, regardless of whether these income and expenses are recognized or not in the profit or loss. e. None of the aboveWhich statement is incorrect? a. Under the transactions approach, net income is computed as the excess of income over expenses b. Under the capital maintenance approach, net income is computed as the excess of ending capital over beginning capital, excluding the effect of investments and withdrawals by owners. c. Unusual and infrequent items of expenses should be presented in in the income statement as a component of income from continuing operation. d. The single statement of comprehensive income shows a detailed presentation of all income and expenses, regardless of whether these income and expenses are recognized or not in the profit or loss. e. None of the above Statement 1: In the statement of changes in equity, the effect of the correction of a prior period error is presented separately for each component of equity. Statement 2: Preference share dividend appear under the retained earnings section of the statement of changes in equity. a. True, True b. False,…
- Which of the following best represents operating income? Seleccione una: a. Income after financing activities b. Earnings before interest and taxes c. Income from discontinued operations d. Income from capital gainsWhich statement is incorrect? * Under the transactions approach, net income is computed as the excess of income over expenses Under the capital maintenance approach, net income is computed as the excess of ending capital over beginning capital, excluding the effect of investments and withdrawals by owners. Unusual and infrequent items of expenses should be presented in in the income statement as a component of income from continuing operation. The single statement of comprehensive income shows a detailed presentation of all income and expenses, regardless of whether these income and expenses are recognized or not in the profit or loss. None of the aboveWhich of the following statements regarding equity is not true? It is defined independently of assets and liabilities. O It includes the retained earnings of the entity. It can be increased by additional contributions by the owners. It is increased by profit.
- 1. Which statement is incorrect? Under the transactions approach, net income is computed as the excess of income over expenses Under the capital maintenance approach, net income is computed as the excess of ending capital over beginning capital, excluding the effect of investments and withdrawals by owners. Unusual and infrequent items of expenses should be presented in in the income statement as a component of income from continuing operation. The single statement of comprehensive income shows a detailed presentation of all income and expenses, regardless of whether these income and expenses are recognized or not in the profit or loss. None of the above 2. S1: In the statement of changes in equity, the effect of the correction of a prior period error is presented separately for each component of equity. S2: Preference share dividend appear under the retained earnings section of the statement of changes in equity. True, True False, False True, False False True 3. The…Net Income: Multiple Choice Decreases equity. Represents the amount of assets owners put into a business. Equals assets minus liabilities. Is the excess of revenues over expenses. Represents owners' claims against assets.Which one of the following will decrease net working capital? Select one: a. A decrease in accounts payable. b. A sale of inventory at a profit. c. A sale of a fixed asset for cash. d. An increase in accounts receivable. e. An increase in accounts payable.
- Owner's equity Select one: a. The resulting amount when total liabilities are subtracted from total assets b. When total liabilities are added to total assets c. None of Them d. The resulting amount when total revenue are subtracted from total cost of salesThe following statement suits best the definition of ASSETS: a. The assets are expenses incurred by the business in each period O b. The assets are contributions made by the owners of the business O c. The assets are debts which are borrowed from banks to purchases non-current assets O d. The assets are resources owned or owing to the business from which future benefits are expected to flow to the businessDepletion is: A revenue for the business A liability for the business An asset for the business lon An expense for the business Which one of the following is not one of the factors in computing