Net Income Is Sometimes Called Earnings or Profit

question 116

True/False

Net income is sometimes called earnings or profit.

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Definitions:

Board Of Directors

A group of individuals elected by shareholders to oversee and make strategic decisions for a corporation.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Contra Account

An account used in accounting to reduce the value of a related account when the two are netted together, providing a clearer picture of financial status.

Fair Value

An estimate of the market value of an asset or liability, based on current prices in active markets.