Which of the following financial formulas is correct?

A) total income = net income - expenses
B) net income = total income - taxes
C) total income = net income - taxes
D) net income = total revenue - taxes - expenses
E) total income = net income + expenses

Answer: B
Explanation: B) The total of all sources of income minus income taxes and FICA taxes provides the figure for net income.

Business

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Taxable income is the total earnings of a person.

a. true b. false

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Which of the following accounts reported on a balance sheet is merely an estimate?

a. equipment b. buildings c. accounts payable d. common stock e. allowance for doubtful accounts

Business