Net Income Is

question 60

Multiple Choice

Net income is:

• A) added to beginning retained earnings on the retained earnings statement
• B) deducted from beginning retained earnings on the retained earnings statement
• C) added to assets on the balance sheet
• D) deducted from net sales on the income statement

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Definitions:

Elastic Demand

refers to a situation where the quantity demanded of a good or service is highly responsive to changes in its price.

Excess Burden

The economic loss to society due to market inefficiencies, often associated with taxes or other government policies that distort market behavior beyond the revenue raised or spending undertaken.

Net Worth

The difference between the total assets and total liabilities of an individual, company, or entity.

Liabilities

Financial obligations or debts that a business or individual owes to others.