When Reading a Legal Text, the First Rule to Apply

question 4

Multiple Choice

When reading a legal text, the first rule to apply is the:

• A)Golden Rule.
• B)Mischief Rule.
• C)Literal Rule.
• D)Class Rule.

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Definitions:

Indirect Method

A method of reporting cash flows from operating activities by starting with net income and adjusting it for items that affected reported net income but did not affect cash.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Income Taxes

Taxes imposed by the government on the income of individuals or corporations, calculated as a percentage of taxable income.

Operating Activities

Business actions that are directly concerned with the production and delivery of goods and services, typically reflected in the income statement.