Holding all other variables constant, an increase in net income can be caused by a decrease in:

the tax rate.

the cost ratio.

depreciation expense.

Both "depreciation expense" and "the tax rate".

"depreciation expense", "the cost ratio", and "the tax rate" are correct.

Which of the following does not appear on the income statement?

Depreciation Expense

Gross Margin

Cost of Goods Sold

Earnings Before Interest and Tax

Accumulated Depreciation

The process of totaling all of the transactions for a recent period and bringing a company's records up to date is referred to as:

double entry.

ending the period.

starting over.

closing the books.

Managers whose bonuses are based on the income of the firm tend to overstate the value of accounts receivable and inventory with the following result:

the firm's value is less than it is held out to be.

liabilities are less than they are held out to be.

profit is more than it is held out to be.

the firm's value is more than it is held out to be.

Holding all other variables constant, an increase in COGS will lead to:

lower net income.

a higher gross margin.

paying more in taxes.

a decreased cost ratio.