Multiple choice

Directions: Choose the correct option and complete the sentence.

______ represents diminution in the ownership equity other than from withdrawal of capital for which no compensating value has been received.

  1. Expense

  2. Cost

  3. Loss

  4. Profit

  5. Income
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A loss is a decrease in ownership equity that arises from peripheral or incidental transactions, or from other events and circumstances affecting the entity, for which no compensating value is received.

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