Which of the Following Equations Is CORRECT

question 38

Multiple Choice

Which of the following equations is CORRECT?

• A) Sales revenues = Variable expenses - (Fixed expenses + Operating income)
• B) Sales revenues - Variable expenses - Fixed expenses = Operating income
• C) Sales revenues + Variable expenses + Fixed expenses = Operating income
• D) Sales revenues - Fixed expenses = Variable expenses - Operating income

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Definitions:

Taxation

The practice by which a government collects money from individuals, businesses, and other organizations to fund public services and initiatives.

Partnership

A business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Finance Department

The division within a company that manages and oversees financial operations, including budgeting, forecasting, and investment analysis.

Corporate Form

A legal structure for businesses characterized by the business being considered a separate legal entity from its owners or shareholders.