The net income figure on an income statement is calculated before deducting the:
A) interest expense.
B) depreciation expense.
C) cash dividends.
D) tax liability.

Name: The net income figure on an income statement is calculated before deducting the: A) interest expense. B) depreciation expense. C) cash dividends. D) tax liability.
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Question

Quizplus · Accepted Answer

Cash dividends are not deducted on the income statement; they are distributions of profit to shareholders and are recorded on the statement of retained earnings.

The Net Income Figure on an Income Statement Is Calculated