Which one of the following does not reduce a firm's net income?
A) Income taxes
B) Interest expense
C) Dividends
D) Depreciation expense

Name: Which one of the following does not reduce a firm's net income? A) Income taxes B) Interest expense C) Dividends D) Depreciation expense
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Question

Quizplus · Accepted Answer

Income taxes, interest expense, and depreciation expense all reduce net income. However, dividends are paid out of after-tax profits and do not directly affect net income.

Which One of the Following Does Not Reduce a Firm's