Unit 2 — Income Statements & Taxes

0.0(0)
Studied by 0 people
call kaiCall Kai
Locked
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/9

encourage image

There's no tags or description

Looks like no tags are added yet.

Last updated 1:32 PM on 8/27/26
Name
Mastery
Learn
Test
Matching
Spaced
Call with Kai
Chat

No analytics yet

Send a link to your students to track their progress

10 Terms

1
New cards

Marginal Tax Rate

The percentage of tax paid on the next dollar earned.

the tax percentage applied to additional income you earn.

2
New cards

Average Tax Rate

Total taxes divided by taxable income.

3
New cards

Net Income (NI)

Income after taxes that is available to shareholders; also called the bottom line.

4
New cards

What can Net Income be used for?

Net income can be paid as dividends or added to retained earnings.

5
New cards

EPS

Earnings Per Share.

6
New cards

Net Income Formula

NI = Dividends + Addition to Retained Earnings.

7
New cards

EPS Formula

EPS = Net Income ÷ Number of Shares Outstanding.

8
New cards

DPS

Dividends Per Share.

9
New cards

DPS Formula

DPS = Dividends ÷ Number of Shares Outstanding.

10
New cards

What is more important to financial managers: accounting income or cash flow?

Cash flow is more important because the value of a firm is determined by its cash flows.