On a Departmental Income Statement,contribution Margin Minus Total Indirect Expenses

question 87

Multiple Choice

On a departmental income statement,contribution margin minus total indirect expenses equals:

• A)departmental contribution margin.
• B)net income.
• C)income before taxes.
• D)income taxes.

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Definitions:

Double-Entry

An accounting principle where every transaction is entered twice, as a debit in one account and a credit in another, to keep the accounting equation balanced.

Accounting Equation

The fundamental principle of accounting that represents the relationship between assets, liabilities, and owner's equity: Assets = Liabilities + Owner's Equity.

Journal Entry

A record in the books of accounts that represents a business transaction, including information like date, accounts affected, and amounts.

Net Income

The total earnings of a company, calculated as revenue minus expenses, taxes, and costs.