Which of the following terms refers to the difference calculated by subtracting income taxes from the operating income of an organization?
A) Gross revenue
B) Net income
C) Gross profit
D) Cash flow
E) Leverage
Answer: B
Explanation: B) Net income is operating income minus taxes.
Business
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Comparing net present value and internal rate of return ________
A) always results in the same ranking of projects B) always results in the same accept-reject decision C) may give different accept-reject decisions D) is only necessary on independent projects
Business
Which of the following statements is true of discretionary costs?
A) They arise from day-to-day operational decisions. B) They include conversion cost, direct material costs. C) They have measurable cause-and-effect relationship between output and resources used. D) They have high level of uncertainty.
Business