The Amount of Net Income Will Appear on the Debit

question 88

Multiple Choice

The amount of net income will appear on the debit side of the Income Statement columns on a work sheet,

• A) if total revenue exceeded total expenses for the period.
• B) if withdrawals have been made during the period.
• C) if total assets exceeded total liabilities for the period.
• D) if total expenses exceeded total revenue for the period.
• E) if net income exceeds the owner's withdrawals.

---

Definitions:

Marginal Tax Rate

The rate at which the last dollar of a person's income is taxed, indicating how much tax will be paid on an additional dollar of income.

Income Before Taxes

The gross income a person or corporation earns before taxes are deducted.

Marginal Tax Rate

The rate at which an additional dollar of income is taxed, serving as a useful measure of the impact of taxes on incentives to earn more.

Average Tax Rate

The ratio of the total amount of taxes paid to the taxpayer's total taxable income.