Net Income Was $418,600 in the Current Year and $364,000

question 18

Multiple Choice

Net income was $418,600 in the current year and $364,000 in the prior year.The year-to-year percentage change in net income is closest to:

• A) 15%.
• B) 55%.
• C) 87%.
• D) 13%.

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Definitions:

Leisure

Leisure refers to the time available to an individual when not engaged in work, when one can relax, engage in recreational activities or hobbies.

Nonlabor Income

Income received from sources other than direct employment or labor, such as investments, retirement pensions, or social security benefits.

Wage Rate

The standard amount of compensation given for the performance of specific services, typically expressed per hour, day, or other periods of work time.

Budget Equation

An equation that represents the relationship between income, savings, and expenses.