Net Income

question 52

Multiple Choice

Net Income:

• A)Decreases equity.
• B)Represents the amount of assets stockholders put into a business.
• C)Equals assets minus liabilities.
• D)Is the excess of revenues over expenses.
• E)Represents stockholders' claims against assets.

---

Definitions:

Federal Government

The national government of a federation, which holds the authority to govern on matters that affect the entire country, such as defense, fiscal policy, and interstate commerce.

Treasury Bond

A long-term, interest-bearing security issued by the U.S. government considered a low-risk investment.

Price-Earnings Ratio

A valuation metric comparing a company’s current share price to its per-share earnings, indicating the market's expectations of growth.

Earnings Per Share

A financial metric calculated by dividing the net earnings available to common shareholders by the average outstanding shares.