In the Context of the Calculation of the Net Income

question 88

Multiple Choice

In the context of the calculation of the net income of a firm, the final step of the process comprises:

• A) finding the firm's accounts receivable for goods sold on credit.
• B) finding the difference between the firm's gross profit and its operating expenses.
• C) deducting the firm's interest expenses and taxes from its net operating income.
• D) deducting the firm's costs of goods sold from its revenue.

---

Definitions:

Michigan

A state in the United States located in the Great Lakes region, known for its extensive freshwater coastline and automotive manufacturing industry.

Federal Reporter

A collection of case law from federal courts of appeal, used as references for legal precedent.

Citation

A reference to a source of legal authority, such as statutes, cases, or regulations, or the act of issuing a notice of violation to an individual.

Sixth Circuit

Refers to a federal judicial circuit in the United States, covering portions of Michigan, Ohio, Kentucky, and Tennessee, known for its appellate jurisdiction.