Net income is equal to which one of the following?
A)operating income plus interest expense minus taxes
B)gross profit minus depreciation and interest expense
C)pretax income plus income taxes
D)dividends plus the change in retained earnings
E)pretax income minus taxes and dividends

Question

Quizplus · Accepted Answer

Net income is the sum of dividends paid to shareholders and the change in retained earnings, as it represents the total earnings after all expenses and taxes have been deducted.

Net Income Is Equal to Which One of the Following