Which of the Following Statements About Net Income (NI) Is

question 21

Multiple Choice

Which of the following statements about net income (NI) is true?

• A) NI = operating income - income taxes
• B) NI = operating income + operating costs
• C) NI = operating income + non-operating revenues less non-operating costs
• D) NI = operating income less Cost of Goods Sold
• E) NI = operating revenue less Cost of Goods Sold

---

Definitions:

Nearest 0.01%

Rounding to the closest one-hundredth of a percent, often used in financial calculations to ensure precision.

Terminating Decimal

A decimal fraction that comes to an end or has a finite number of digits after the decimal point.

Five-Figure Accuracy

A level of precision where a numerical value is rounded to the nearest ten-thousandth place, representing the first five significant digits.

Terminating Decimal

A decimal fraction that has a finite number of digits after the decimal point.