Identify Which of the Following Increases Earnings & Profits

question 103

Multiple Choice

Identify which of the following increases Earnings & Profits.

• A)a capital contribution
• B)life insurance proceeds payable to the spouse
• C)tax-exempt interest income
• D)All of the above increase E&P of a corporation.

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Definitions:

Increasing Rate

Describes a situation where a quantity or metric, such as inflation, interest rates, or population, is growing over time.

Variable Cost

A cost that changes in proportion to the level of output or activity.

Fixed Cost

Fixed charges that stay the same no matter the production or sales volume, like rental costs, salary payments, and insurance rates.

Composition

The way in which different components or elements are organized or arranged.