Which of the Following Statements Concerning Net Income Is MOST

question 23

Multiple Choice

Which of the following statements concerning net income is MOST correct?

• A) Net income represents cash available to pay dividends.
• B) Net income represents sales minus operating expenses at a specific point in time.
• C) Negative net income reduces a company's cash balance.
• D) Net income represents income that may be reinvested in the firm or distributed to its owners.

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Definitions:

Rosalie Rayner

An American psychologist who, along with John B. Watson, conducted the famous Little Albert experiment, demonstrating that emotional reactions could be conditioned in humans.

Loud Noise

A sound that is high in volume and can possibly cause hearing damage or discomfort.

White Rat

Commonly refers to a breed of domesticated rat, often used in psychological and medical experiments.

Fear

An unpleasant emotion caused by the belief that someone or something is dangerous, likely to cause pain, or a threat.