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:

Profit

The financial gain realized when the revenue from business activities exceeds the costs and expenses associated with its operation.

Bales

Large bundles or packages of material, most commonly used in reference to agriculture commodities like hay or cotton.

Profit-maximizing

In economics, this refers to the process by which a firm determines the price and output level that returns the greatest profit.

Profit

is the financial gain realized when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.