Which One of the Following Statements Is Correct Concerning a Statement

question 113

Multiple Choice

Which one of the following statements is correct concerning a statement of comprehensive income?

• A) Interest expense decreases the taxes owed by a firm.
• B) Net income is either paid out as dividends or added to the retained earnings of the firm.
• C) Depreciation increases the net income of a firm.
• D) Net income is equivalent to the operating cash flow of a firm.
• E) Taxes will increase the amount of a loss incurred by a firm with negative taxable income.

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Definitions:

External Funding Requirement

The need for additional capital from outside sources to finance a company’s operations or growth.

Growth In Assets

An increase in the value or quantity of the assets owned by a company or individual, which can contribute to increased wealth or investment capacity.

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operating cycle.

Top-Down Plan

An approach to business strategy and project planning where decisions are made at the highest level and communicated down the organizational hierarchy.