Which of the following statements concerning net income is MOST correct?
A) Net income represents income that may be reinvested in the firm or distributed to its owners.
B) Net income represents sales minus operating expenses at a specific point in time.
C) Negative net income reduces a company's cash balance.
D) Net income represents cash available to pay dividends.
A
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Reciprocal faith in others' intentions and behaviors is known as ___________
Fill in the blank(s) with the appropriate word(s).
Which of the following statements describes a scenario when management should consider dropping a business division?
A) The division has been consistently reporting an operating loss. B) The division's avoidable fixed costs are less than its contribution margin. C) The division's avoidable fixed costs are greater than its contribution margin. D) The division's unavoidable fixed costs are greater than its operating loss.