Which of the Following Is True of Net Income

question 179

Multiple Choice

Which of the following is true of net income?

• A) Net income is operating income divided by income tax rate.
• B) Net income is operating income plus operating revenues minus operating costs minus income taxes.
• C) Net income is operating income plus nonoperating revenues minus nonoperating costs minus income taxes.
• D) Net income is operating income minus nonoperating revenues minus nonoperating costs minus sales taxes.

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Definitions:

Cause-Effect Relationship

A connection between two events where the first event (the cause) makes the second event (the effect) happen.

Correlation

A statistical measure that describes the extent to which two variables change together, but does not imply causation.

Experimenter Bias

A form of bias introduced by the experimenter whose expectations about the outcome of the experiment can be subtly communicated to the participants.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.