The Formula for Converting Desired Net Income into Operating Income

question 84

Multiple Choice

The formula for converting desired net income into operating income is

• A)Desired net income times the income tax rate.
• B)Desire net income divided by the income tax rate.
• C)Desired net income divided by 1- tax rate.
• D)Desired net income divided by 1+ tax rate.

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Definitions:

Price Ceilings

Price controls that outlaw trade at prices above the ceiling.

Intended

Something that is planned or meant to happen in a specific way.

Price Floors

Price controls that outlaw trade at prices below the floor.

Intended

Designed or planned to serve a particular purpose.