Which of the Following Is Not a Source of Income

question 57

Multiple Choice

Which of the following is not a source of income for international freight forwarders?

• A) payment for freight pick up and delivery
• B) buying space wholesale and selling it retail
• C) commissions on shipping revenues generated for carriers
• D) fees for document preparation and performing research
• E) all of the above are sources of income

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Definitions:

Consolidated Income Tax Return

A single income tax return filed by an affiliated group of corporations, combining their tax liabilities.

Operating Income

Represents the profit a company makes after deducting operating expenses such as wages and cost of goods sold (COGS), but before interest and taxes.

Initial Value Method

An accounting approach where investments are first recorded at their acquisition cost.

Intra-entity Transfers

Transactions occurring between divisions or units within the same company, affecting financial statements without impacting the consolidated financial position.