The Formula for Converting Desired Net Income into Operating Income

question 169

Multiple Choice

The formula for converting desired net income into operating income is

• A)desired net income times the income tax rate.
• B)the income tax rate divided by the desired net income.
• C)desired net income divided by (1 − tax rate).
• D)desired net income divided by (1 + tax rate).

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Definitions:

Bar Graph

A visual depiction of data in which bars of varying lengths represent different values or categories.

Skewed Distribution

A statistical term describing an asymmetry from the normal distribution in a set of data, where the tail on one side of the peak is longer or fatter than the other.

Statistically Significant

A determination that a result from data analysis is unlikely to have occurred by chance, suggesting a real effect or difference is present.

Standard Deviations

A measure of the dispersion or variability within a set of numerical data, indicating how much variation there is from the average (mean).