Which of the Following Statements Is Correct

question 11

Multiple Choice

Which of the following statements is correct?

• A) Dividend income is a component of operating income.
• B) Operating income is decreased by the loss from the sale of plant assets.
• C)A gain on the sale of a stock investment does not increase operating income.
• D)Income before taxes does not change when a gain results from the sale of plant assets.

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Definitions:

Midrange Systems

Computers that possess greater data processing power than personal computers but are less powerful than large mainframe systems.

Processing Speeds

Refers to the rate at which a computer or human can complete a task or process information.

Enterprise Resource Planning System

Integrated software platforms used by organizations to manage and automate many back office functions related to services, technology, and human resources.

Application Service Provider

A business that provides computer-based services to customers over a network, including access to particular application software.