Which of the Following Combinations Does Not Result in the Same

question 228

Multiple Choice

Which of the following combinations does not result in the same amount of net income reported on the income statement?

• A)Total revenues of $80,000 and total expenses of $60,000.
• B)Total revenues of $170,000 and total expenses of $150,000.
• C)Total revenues of $60,000 and total expenses of $40,000.
• D)Total revenues of $70,000 and total expenses of $60,000.
• E)Total revenues of $40,000 and total expenses of $20,000.

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Definitions:

Rate of Inflation

The Rate of Inflation is the pace at which the general level of prices for goods and services is rising, eroding purchasing power.

Real Interest Rates

The interest rate adjusted for inflation, representing the real cost of borrowing and the real yield to lenders or investors.

Usury Laws

Regulations that impose a maximum interest rate that may be charged on loans.

Low-Income Borrowers

Individuals or households with low income levels who may face difficulties in obtaining loans or are considered high risk by lenders.