Final answer:
The claim is false; net income includes adjustments for non-operating activities, not just income from operations. Net taxable income is based on financial statements, and the effective tax rate is an average rate accounting for tax benefits.
Step-by-step explanation:
The statement is false. When a company has no reportable non-operating activities, the income from operations does not simply become net income. This is because net income is calculated by taking income from operations and adjusting it for non-operating activities such as interest income, interest expense, gains or losses from investments or asset sales, and taxes.
Net taxable income for corporate tax is based on the company's financial statement income. Companies are subjected to varied tax rates depending on their jurisdiction, but the effective tax rate is used to communicate the average rate paid. This rate accounts for any tax benefits a company may have utilized during the fiscal year.