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:

Validity

Refers to the extent to which a concept, conclusion or measurement is well-founded and likely corresponds accurately to the real world.

Accuracy

The degree to which a measurement or estimation matches the true value or standard.

Reliability

The degree to which an assessment tool produces stable and consistent results over multiple measurements.

Validity

The extent to which a concept, conclusion, or measurement is well-founded and corresponds accurately to the real world.