Which of the following statements is true?

Question

Quizplus · Accepted Answer

A) When operating income is positive, it means the company's revenue is greater than its expenses, hence revenue > expenses.
B) When net income is negative, it means the company's expenses are higher than its revenue, leading to a loss. This loss reduces the retained earnings of the company.
C) When net income is positive, the company has earned a profit, leading to an increase in shareholders' equity. This is because the profit earned by the company is added to the retained earnings, which is a part of shareholders' equity.

Which of the Following Statements Is True