Net Income Is Calculated As

question 41

Multiple Choice

Net income is calculated as:

• A) total revenue - total operating expenses.
• B) total revenue - total operating expenses - taxes.
• C) asset utilization - expense ratio.
• D) asset utilization - expense ratio - tax ratio.
• E) interest expense ratio - non-interest expense ratio - provision for loan loss ratio.

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Definitions:

Taxes

Required fiscal contributions or alternative kinds of dues enforced on taxpayers by governmental bodies aimed at raising funds for government activities and diverse public expenses.

Unemployment Benefits

Financial payments made by the government to individuals who are unemployed and meet certain eligibility requirements.

Income Taxes

Taxes levied by governments on the income generated by individuals or entities, which vary according to the level of income earned.

Federal Budget Surpluses

Occurs when a government's income exceeds its spending during a particular fiscal year.