ABC Company's income statement shows Service Revenue of $40,000,Salaries and Wages Expense of $25,000 and net income of $1,000.The other expenses on ABC's income statement must equal:
A) $14,000.
B) $15,000.
C) $16,000.
D) $66,000.

Question

Quizplus · Accepted Answer

The net income is calculated as Service Revenue minus total expenses. Given Service Revenue of $40,000 and net income of $1,000, total expenses must be $39,000. With Salaries and Wages Expense of $25,000, the other expenses must be $39,000 - $25,000 = $14,000.

ABC Company's Income Statement Shows Service Revenue of $40,000,Salaries and Wages