Which One of the Following Does Not Reduce a Firm's

question 20

Multiple Choice

Which one of the following does not reduce a firm's net income?

• A) Income taxes
• B) Interest expense
• C) Dividends
• D) Depreciation expense

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Definitions:

Comprehensive Income

This term includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Comprehensive Income

A measure of all changes in equity of a company that result from recognized transactions and other economic events of the period other than those resulting from investments by and distributions to owners.

Unrealized Gains

Profits from investments that have increased in value but have not yet been sold for cash.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenues.