Net Income Is

question 92

Multiple Choice

Net income is:

• A)added to assets on the balance sheet.
• B)deducted from beginning retained earnings on the retained earnings statement.
• C)added to beginning retained earnings on the retained earnings statement.
• D)deducted from ending retained earnings on the retained earnings statement.

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Definitions:

Market Price

This term refers to the actual selling price of goods or services in the marketplace at any given time.

Future Net Earnings

The projected amount of money that a company is expected to earn in the future after all expenses and taxes have been deducted.

Business Asset

Resources owned by a company that have economic value and can contribute to future profits.

Pure Interest Yield

The portion of interest or return on an investment that represents the compensation for the time value of money, excluding any other types of returns or costs.