Under Current Accounting Principles,how Is Net Income on the Income

question 51

Multiple Choice

Under current accounting principles,how is net income on the income statement measured?

• A)Net change in owners' equity during the period
• B)Excess of revenues over expenses during the period
• C)Net change in the cash balance during the period
• D)Excess of revenues over expenses less any dividends paid during the period

---

Definitions:

Public Policy

A course of action or regulations adopted by government to address societal issues, guide decisions, and achieve rational outcomes.

Legislative Environment

The legal and regulatory framework within which an organization operates, influenced by laws and policy-making bodies.

External Political Advocacy

Activities conducted outside of an organization to influence political decisions or policies in favor of a particular cause or interest.

Statutory Law

Statutory law consists of laws and statutes that have been enacted by legislative bodies, such as Congress or state legislatures, formally codifying regulations and legal standards.