What Is the Amount of Net Income on the Income

question 109

Multiple Choice

What is the amount of net income on the income statement for the year?

• A)$30,000
• B)$38,000
• C)$88,000
• D)$47,000

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Definitions:

Minimum Required Rate Of Return

This term refers to the lowest return that investors expect for an investment, considering the risk involved.

Operating Expenses

Non-production costs incurred by a business in the process of earning revenues, such as selling, general, and administrative expenses.

Average Operating Assets

Average operating assets represent the average value of the assets used in the normal operations of a business within a specific period, often used in calculating return on investment metrics.

Minimum Required Rate Of Return

The lowest return that investors or managers expect to receive on an investment to make it worthwhile.