To determine his company's net profits, Edward should
A) deduct cost of goods sold from sales.
B) add interest paid and depreciation expense.
C) deduct income taxes from profits before taxes.
D) add income taxes paid and income before taxes.

Question

Quizplus · Accepted Answer

To determine net profits, one should deduct income taxes from profits before taxes. This gives the actual profit after all expenses and taxes have been accounted for.

To Determine His Company's Net Profits, Edward Should