Which of the following items would decrease profit for the year?
A) Purchase of equipment for cash
B) Payment of a dividend
C) Purchase of equipment on credit
D) None of the answers provided

Question

Quizplus · Accepted Answer

Purchasing equipment, whether for cash or on credit, and paying dividends do not affect the profit for the year. Profit calculation is based on revenues and expenses, and these transactions do not fall under those categories.

Which of the Following Items Would Decrease Profit for the Year