If the Tax Rate Is T, It Is Possible to Calculate

question 158

Multiple Choice

If the tax rate is t, it is possible to calculate planned operating income by

• A)dividing net operating income by t.
• B)dividing net operating income by 1 - t.
• C)multiplying net operating income by t.
• D)multiplying net operating income by 1 - t.
• E)dividing net operating income by t - 1.

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Definitions:

Revenue Accounts

Accounts that track the income generated from the company's primary operations and other activities.

Expense Accounts

Accounts used to track money spent or costs incurred in a company's operation to generate revenue.

Year-End Closing Process

The series of steps taken to close out business accounts at the end of the fiscal year, preparing the books for the next fiscal period.

Fees Earned

Income generated from providing services, regarded as a revenue for the entity performing the service.