A company's net income depends on all of the following except
A) amount of sales.
B) cost of goods sold.
C) interest expenses and taxes.
D) inventory estimates.

Question

Quizplus · Accepted Answer

While inventory estimates can impact a company's financial statements and profitability, they do not directly determine net income. Net income is calculated by subtracting all expenses (including cost of goods sold, interest expenses, and taxes) from the amount of sales.

A Company's Net Income Depends on All of the Following