Paragraph Net profit in the profit and loss statement is determined by: 17. A. The amount of cash held in the business. B. C. D. Styles Deducting the total of all payments made during the accounting period from the total of all receipts for the accounting period. The total of all revenue received for the accounting period less the total of all expenses paid for the accounting period. Deducting the total of all expenses incurred for the accounting period from the total of all revenue earned during the accounting period. 18. E. The total of F. all assets less the total of all liabilities. With respect to cash, which of the following statements is true? A. B. C. BCDE D. E. The balance of the cash at bank account is the same as the net profit made for the period. The cash account records all expenses and revenues for the period. All receipts and payments during the period will affect the cash at bank account. Every business transaction affects the cash at bank account. An owner taking money out of the business does not affect the cash available. Which of the following statements regarding business expenses is correct? 19. ARCDE A. B. C. D. E. Expenses represent the consumption of resources. Expenses occur when payment is made for resources used. An expense has no effect on owner's equity. Expenses are added to revenue to determine profit for the period. Cash at bank decreases when an expense is incurred.