Which of the following reflects a false observation on the income statement?

Which of the following reflects a false observation on the income statement?

A.Firms with high quality earnings generally rely on non-operating results for net income improvement.

B.Firms reporting operating expenses trending downward as a percent of revenue will view the trend as favorable.

C.Increases in earnings before taxes will typically result in higher taxes.

D.Discontinued operations will be reported net of taxes below income from continuing operations.