Kershner Says: "Our Income Statement Should Be Looking Good This

question 197

Multiple Choice

Kershner says: "Our income statement should be looking good this year.We've been doing excellent business this year,so we have a lot of gross sales.The company should be in good shape." Michaels replies: "It remains to be seen how our income statement will look overall.Despite strong sales revenue,the overall income statement might not be as good as we might hope."
Which of the following does Michaels assume?

• A)Revenues this year were not as high as last year's.
• B)Revenues are not as high as Kershner thinks they are.
• C)Selling expenses exceeded administrative expenses this year.
• D)Other factors must be considered to arrive at an income statement.
• E)Income taxes will be high this year.

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Definitions:

Minority Group Members

Individuals belonging to a socially subordinate group that is distinguished by ethnicity, race, religion, or sexual orientation.

Multiculturalism

A policy or ideology that promotes the representation and participation of diverse cultural traditions and peoples within a society.

Marginalizes

The process by which certain groups or individuals are pushed to the edge of society by not allowing them an active voice, recognition, or rights, effectively keeping them in a lower social standing.

Beothuk

An indigenous people native to Newfoundland, Canada, known for their tragic extinction in the early 19th century due to European diseases, violence, and displacement.