The True Statement Is

Multiple Choice

The true statement is:

A) The profit of an entity is always represented by an increase in cash of the same amount.
B) A withdrawal of cash for private use by the owner is shown in the income statement as an expense.
C) Equity can be thought of as the owner's claim to the assets of the entity after deducting all liabilities.
D) Profit can be calculated as; Net assets at the end of the year less net assets at the beginning of the year less drawings.