As Seen on a Statement of Comprehensive Income

question 26

Multiple Choice

As seen on a statement of comprehensive income:

• A) Interest is deducted from income and increases the total taxes incurred.
• B) The tax rate is applied to the earnings before interest and taxes when the firm has both depreciation and interest expenses.
• C) Depreciation is shown as an expense but does not affect the taxes payable.
• D) Depreciation reduces both the taxable income and the net income.
• E) Interest expense is added to earnings before interest and taxes to get taxable income.