The income statement begins with revenue and subtracts various operating expenses until arriving at the intermediate point of ________
A) earnings after taxes
B) net income
C) taxable income
D) EBIT
Answer: D
Explanation: D) The income statement begins with revenue and subtracts various operating expenses until arriving at Earnings Before Interest and Taxes (EBIT). Next, interest expense is subtracted to find the taxable income for the period. Then the appropriate taxes are calculated and subtracted. We finally arrive at the net income, the so-called bottom line of the income statement.
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Explain the meaning of the term takt time, and use a numerical example to illustrate
What will be an ideal response?