Mahar Wants to Calculate Net Income

question 65

Multiple Choice

Mahar wants to calculate net income.Which formula should he use?

• A) Gross profit minus total operating expenses minus income taxes
• B) Gross profit minus income taxes
• C) Revenues minus operating expenses
• D) Gross profit minus administrative expenses minus income taxes
• E) Gross profit minus operating expenses

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Definitions:

Enforceable

Describing a legal agreement that can be compelled or upheld in a court of law.

Parol Evidence

Parol Evidence refers to verbal or extrinsic information that is not included in the written contract, which parties may attempt to introduce to interpret, modify, or supplement the contract terms.

Integrated Written Contract

A contract that is contained completely within a single written document, representing the full agreement between the parties, and superseding any previous agreements or negotiations.

Notarized

The act of officially certifying a legal document by a notary public, confirming the authenticity of signatures or documents.