Net income is computed as:
A)revenues - expenses - dividends.
B)revenues + expenses.
C)revenues - expenses.
D)revenues - expenses + dividends.

Question

Quizplus · Accepted Answer

Net income is the amount by which revenues exceed expenses, which is computed by subtracting total expenses from total revenues. Dividends are not included in the calculation of net income. Therefore, the correct choice is C) revenues - expenses.

Net Income Is Computed As