Question

Which of the following statements are correct?
a. When income earned by an entity is more than its expenditure, the entity makes a profit
b. When the income earned by an entity is less than its expenditure, the entity makes a profit
c.The profit that an entity makes, increases the net worth of the owner
d.The loss that an entity makes, decreases the net of the owner
e.The statement of financial position measures the financial performance of an entity

1.a,b,c,d and e
2.a,b,c and e
3.a,c,d and e
4 a,b,c and d
5 a,c and d

Answer 1

a) When income earned by an entity is more than its expenditure, the entity makes a profit

c) The profit that an entity makes, increases the net worth of the owner

d) The loss that an entity makes, decreases the net of the owner

Correct answer: 5) a,c and d