Question

Net income increases when: Group of answer choices fixed costs increase. depreciation increases. the average tax rate increases. revenue increases. dividends cease.

Answer 1

Net income increases when "revenue" increases.

What is revenue?

The overall revenue generated by a business over a predetermined period of time. This can be done by-

• The entire income generated by a specific source, such as a property with high predicted yearly returns.

• The total income a financial investment generates.
• The amount of revenue that a political entity, such as a country or state, collects and deposits into the treasury for use by the general public.

• The simplest way to determine revenue is to multiply the total number of units sold by the selling price.
• A company's earnings, or bottom line, will be lower than its sales because revenues do not take expenditures or expenses into account.

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