Which of the Following Is True of Net Income

question 179

Multiple Choice

Which of the following is true of net income?

• A) Net income is operating income divided by income tax rate.
• B) Net income is operating income plus operating revenues minus operating costs minus income taxes.
• C) Net income is operating income plus nonoperating revenues minus nonoperating costs minus income taxes.
• D) Net income is operating income minus nonoperating revenues minus nonoperating costs minus sales taxes.

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Definitions:

Truth Table

A table in logic that is utilized to assess if a complex statement is true or false by examining the truth values of its constituent parts.

Negation

The logical operation of denying or contradicting a statement or proposition, creating its opposite in meaning.

Tautology

A statement that is true by necessity or by virtue of its logical form, often involving redundancy.

Grammatically Correct

Adhering to the rules of grammar, ensuring clarity and precision in language use.