A Company Expects Its Three Departments to Yield the Following

question 37

Multiple Choice

A company expects its three departments to yield the following income for next year.

Compute the change to the company's total net income if Dept. C is eliminated.

• A) $300 decrease.
• B) $300 increase.
• C) $2,800 decrease.
• D) $2,800 increase.
• E) $6,800 decrease.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.