Which of the Following Is Used to Define the After-Tax

question 53

Multiple Choice

Which of the following is used to define the after-tax income that consumers have left for spending and savings?

• A)discretionary income
• B)gross income
• C)variable income
• D)disposable income

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Definitions:

Income Tax Expense

The amount of expense recognized in a given period for taxes on profits, reflecting the expected cash outflow to tax entities.

Loss Carryback

A tax provision that allows businesses to apply a net operating loss to past tax years in order to receive a tax refund.

Income Before Taxes

The amount of income a company generates before accounting for income taxes, often used to assess the profitability of a company excluding tax expenses.

Income Tax Rate

The proportion of an entity's income that is subjected to taxation.