A. Inventory
B. Supplies
C. Machinery
D. Depreciation

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Depreciation expenses are deducted from net income for tax purpose.

Related Mcqs:

  1. An income available for shareholders after deducting expenses and taxes from revenues is classified as______________?
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  4. Type of bonds that pays no coupon payment but provides little appreciation are classified as______________?
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  6. Which of the following costs are reported on the income statement as the cost of goods sold?
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  7. Formula such as net income available for common stockholders divided by total assets is used to calculate__________________________?
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  8. Income that is saved and not invested is known as____________?
    A. Capital B. Deposit C. Hoarding D. None Submitted by: Ahsan...
  9. A formula such as net income available to common stockholders divided by common equity is used to calculate __________?
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  10. The marginal income tax rate is 28% and before tax rate of return is 14.5% then the after tax rate of return is __________?
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The correct answer to the question: "Which of the following item provides the important function of shielding part of income from taxes?" is "Depreciation".