Which of the Following Statements About a Multistep Income Statement

question 10

Multiple Choice

Which of the following statements about a multistep income statement is not correct?

• A)Income before income taxes = Net income + Income tax expense
• B)Depreciation is subtracted in the calculation of core operating results.
• C)Income from operations = Income before income tax expense + Other revenues (expenses),net
• D)Income from operations = Net income + Income tax expense − Other revenues (expenses),net

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Definitions:

Marginal Utility

The surplus satisfaction or utility experienced by an individual from consuming an extra unit of a particular good or service.

Utility Maximization

The process by which individuals allocate their resources to maximize their satisfaction or utility.

Diminishing Marginal Utility

The principle that as a person increases consumption of a product, there is a decline in the additional satisfaction or utility that person gains from consuming one more unit of the product.

Additional Utils

The extra satisfaction or utility a consumer receives from consuming one more unit of a good or service.