The type of financing (whether with debt or equity)does not affect which stream of income?
A)Net profit after tax but before dividends.
B)Net working capital
C)Operating income
D)Income before tax

Question

Quizplus · Accepted Answer

The type of financing does not affect the operating income, which is the income generated from the primary operations of a business. Operating income is calculated by deducting operating expenses from revenue. It is unaffected by the type of financing as it is related to the company's operational efficiency rather than the financing structure. Net profit after tax before dividends, income before tax, and net working capital are all affected by the type of financing used.

The Type of Financing (Whether with Debt or Equity)does Not