Asked by ashlee clowers on Apr 29, 2024
Verified
Net income will result when
A) revenues (credits) > expenses (debits)
B) revenues (debits) > expenses (credits)
C) expenses (credits) = revenues (debits)
D) revenues (credits) = expenses (debits)
Net Income
The total earnings of a company, calculated as revenue minus expenses, taxes, and costs.
Revenues
The total amount of money received by a company for goods sold or services provided during a specific period.
Expenses
Economic costs that a business incurs through its operations to earn revenue.
- Understand the principles of double-entry accounting and its consequences.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
A
Explanation :
Net income is the amount by which revenues exceed expenses for a period of time. This means that revenues should be greater than expenses, which can be represented as credits (positive) being greater than debits (negative). Therefore, the correct choice is A.
Learning Objectives
- Understand the principles of double-entry accounting and its consequences.
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