Multiple Choice
Based on the human life value approach, which of the following is NOT used to calculate the fundamental accounting equation?
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1. Introduction to Accounting
Fundamental Accounting Equation
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
A loss is the level of profit that occurs when the total revenue is _____ than the total cost.
A
double
B
less
C
equal
D
greater
Verified step by step guidance1
Understand the concept of profit and loss: Profit occurs when total revenue exceeds total costs, while a loss occurs when total costs exceed total revenue.
Analyze the relationship between total revenue and total cost: If total revenue is less than total cost, it results in a loss.
Review the options provided: 'double,' 'less,' 'equal,' and 'greater.' Only 'less' correctly describes the condition for a loss.
Confirm the correct answer by matching the definition of a loss with the options provided.
Conclude that the correct answer is 'less,' as it aligns with the definition of a loss in financial accounting.
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