Which of the Following Would Be Excluded from Total Income

question 77

Multiple Choice

Which of the following would be excluded from total income to obtain net income?

• A)contributions to RPPs
• B)mortgage interest
• C)child support payments
• D)foreign income exclusion
• E)charitable contributions

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Definitions:

Return on Investment

A measure of the profitability and efficiency of an investment, calculated as the return (or gain) from an investment relative to its cost.

Markup

An amount added to the cost price of goods to cover overhead and profit.

Absorption Costing

An accounting method that includes all direct costs and an allocated portion of fixed and variable overhead costs in the cost of a product.

Cost-plus Pricing

Setting the price of a product by adding a markup to its variable costs to ensure a margin of profit.