Which of the Following Statements Concerning Net Income Is MOST

question 23

Multiple Choice

Which of the following statements concerning net income is MOST correct?

• A) Net income represents cash available to pay dividends.
• B) Net income represents sales minus operating expenses at a specific point in time.
• C) Negative net income reduces a company's cash balance.
• D) Net income represents income that may be reinvested in the firm or distributed to its owners.

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Definitions:

Individualistic

Focusing on personal independence and the expression of individual attributes over group or collective identity.

Human Beings

Members of the species Homo sapiens, characterized by their ability to think critically, communicate through complex language, and create culture.

Company

An organization engaged in commercial, industrial, or professional activities, either for-profit or not-for-profit.

Maximum Inclusion

A principle or policy aimed at ensuring the highest possible level of participation or inclusion of all relevant parties or demographic groups.