Which of the Following Is Typically Included in the Income

question 51

Multiple Choice

Which of the following is typically included in the income tax provision?

• A) deferred income tax
• B) state and local income tax
• C) federal income tax on gain from discontinued operations
• D) federal, state, and local payroll tax

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Definitions:

Return On Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Dividend Payout Ratio

The percentage of net income that a company pays out to its shareholders as dividends, indicating how much money a company returns to shareholders versus retaining.

Price-Earnings Ratio

A measure of a company's current share price relative to its per-share earnings.

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's net income that is paid out to its shareholders as dividends.