Which one of the following statements related to the income statement is correct?
A)Depreciation has no effect on taxes.
B)Interest paid is a noncash item.
C)Taxable income must be a positive value.
D)Net income is distributed either to dividends or retained earnings.
E)Taxable income plus interest and depreciation equals earnings before interest and taxes.

Question

Quizplus · Accepted Answer

Net income is distributed either to dividends or retained earnings, as it represents the profit after all expenses, including taxes, have been deducted.

Which One of the Following Statements Related to the Income