Which of the Following Streams of Income Is Not Affected

question 3

Multiple Choice

Which of the following streams of income is not affected by how a firm is financed (whether with debt or equity) ?

• A) Net profit after tax but before dividends
• B) Net working capital
• C) Operating income
• D) Income before tax

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Definitions:

Factory Supervisor

An individual responsible for overseeing the operations and workers in a manufacturing facility, ensuring productivity and compliance with safety standards.

Depreciation

The allocation of the cost of a tangible asset over its useful life, recognizing the asset's wear and tear over time.

Prime Cost

The sum of direct materials cost and direct labor cost, representing the direct production costs.

Cost Structure

The composition of different types of costs within a company or specific project, often categorized into fixed and variable costs.