Which of the Following Statements Accurately Describes the Income Tax

Multiple Choice

Which of the following statements accurately describes the Income Tax Act view of income?

A) Net income is determined by adding revenue based on recognition at the point of sale and deducting expenses which are determined based on generally accepted accounting principles.
B) Net income is determined by adding together several different types of income based on an ordering rule.
C) Net income is the amount paid to an employee after an employer deducts CPP, EI, income taxes and any other source deductions from employee pay.
D) Net income is the total increase in a taxpayer's net worth for the year.