Net income or net loss for a period is calculated by the following formula:
A)total revenues - total liabilities.
B)total revenues - total expenses - total withdrawals + assets.
C)total revenues - total expenses.
D)total revenues - total expenses + capital.

Question

Quizplus · Accepted Answer

Net income or net loss is calculated by deducting total expenses from total revenues. Option C provides the correct formula for calculating the net income or net loss of a business.

Net Income or Net Loss for a Period Is Calculated