Operating Income Is Equal to Net Income Plus Income Taxes

question 25

True/False

Operating income is equal to net income plus income taxes.

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Definitions:

Economic Profits

Profits earned by a firm after accounting for both explicit and implicit costs, indicating the total returns exceeding the costs of all resources employed.

Economic Profit

The difference between a firm's total revenue and its total costs, including both the explicit and implicit costs, representing the financial gain exceeding the opportunity costs.

Total Revenue

The gross income of a company, which is the sum of money generated from its goods or services sold before deducting any costs.

Annual Salary

The total amount of money earned by an employee in a year from their job before taxes and other deductions.