During 2013,a company's assets increase by $56,000 and its liabilities increase by $38,000.If no dividend is paid and no further capital is contributed,net income for 2013 was:

Question

Quizplus · Accepted Answer

The increase in assets ($56,000) must equal the increase in liabilities ($38,000) plus the net income (NI). Therefore, NI = $56,000 - $38,000 = $18,000. No dividend payment or additional capital contribution is mentioned in the problem, so they can be ignored.

During 2013,a Company's Assets Increase by $56,000 and Its Liabilities