Multiple choice: 1. Which of the following is incorrect regarding profit? A. Profit is measured only indirectly as an arithmetical difference. B. Profit increases equity. C. Profit is the excess of total income over total expenses. D. Profit is earned if total income is less than total expenses. 2. An increase to an account is recorded A. in the debit side of that account. B. in the credit side of that account. C. beside the account. D. in the side of that account that represents its normal balance.
Multiple choice: 1. Which of the following is incorrect regarding profit? A. Profit is measured only indirectly as an arithmetical difference. B. Profit increases equity. C. Profit is the excess of total income over total expenses. D. Profit is earned if total income is less than total expenses. 2. An increase to an account is recorded A. in the debit side of that account. B. in the credit side of that account. C. beside the account. D. in the side of that account that represents its normal balance.
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 23MC: Which of the following accounts would not be reported under revenue on a simple income statement? A....
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Multiple choice:
1. Which of the following is incorrect regarding profit?
A. Profit is measured only indirectly as an arithmetical difference.
B. Profit increases equity.
C. Profit is the excess of total income over total expenses.
D. Profit is earned if total income is less than total expenses.
2. An increase to an account is recorded
A. in the debit side of that account.
B. in the credit side of that account.
C. beside the account.
D. in the side of that account that represents its normal balance.
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