Which of the Following Would Not Affect a Company's Net

question 16

Multiple Choice

Which of the following would not affect a company's net income?

• A)A change in the company's income taxes.
• B)Changing the selling price of a company's product.
• C)Paying a dividend to shareholders.
• D)Advertising a new product.

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Definitions:

Net Liability

Net liability refers to the total liabilities of an entity minus its assets, indicating a financial position where obligations exceed resources.

Accrued Interest

Interest that has been incurred but not yet paid.

Premium

An amount paid in excess of the normal or nominal value, often relating to the additional cost over the face value of securities or insurance charges beyond standard rates.