Which One of the Following Statements Is Correct

question 72

Multiple Choice

Which one of the following statements is correct?

• A)Pretax income is equal to gross profit minus interest expense.
• B)Gross profit is equal to sales minus costs of goods sold and depreciation.
• C)Operating expenses are indirect costs.
• D)Costs that vary directly with production are classified as operating expenses.
• E)The change in retained earnings is equal to net income plus dividends paid.

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Definitions:

Productivity Decline

A reduction in the efficiency at which labor, capital, and other inputs produce output, often measured by output per hour worked.

Manufacturing

The process of producing goods on a large scale using labor, machines, tools, and chemical or biological processing or formulation.

Impeachment

A formal process in which officials can be accused of unlawful activity, potentially leading to their removal from office upon conviction.

Resignation

Resignation refers to the act of giving up or stepping down from a position of authority or office, typically in a formal manner.