Explain net income and what implications can tax have on it that influences a manager's decision?
What will be an ideal response?
Answer: Net income is operating income plus nonoperating revenues such as interest revenue minus nonoperating costs such as interest cost minus income taxes. Some decisions might not result in a large operating income, but their tax consequences make them attractive because they have a positive effect on net income–the measure that drives shareholders' dividends and returns.
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Which of the following is used to implement multiple ledgers and use each ledger for different purposes?
a. Financial accounting document b. Subsidiary ledger c. Sub-ledger d. Parallel Accounting e. None of the above
The first step in the system definition phase of the systems development life cycle (SDLC) is to ________
A) plan the project B) conduct a feasibility study C) define the goals and scope D) form the project team