Net income is defined as:
A) Net interest income - burden + provision for loan loss + securities gains or losses - taxes.
B) Net interest income + burden + provision for loan loss + securities gains or losses - taxes.
C) Net interest income - burden - provision for loan loss + securities gains or losses - taxes.
D) Net interest income - burden - provision for loan loss + securities gains or losses + taxes.
E) Net interest income + burden - provision for loan loss + securities gains or losses - taxes.

Question

Quizplus · Accepted Answer

Net income is calculated by subtracting expenses, including the provision for loan losses and taxes, from revenues, and adding securities gains or losses. Option C correctly represents this calculation by subtracting both the provision for loan losses and taxes from the sum of net interest income and securities gains or losses, after also subtracting burden.

Net Income Is Defined As