During the year 2009, Diego Company earned revenues of $45,000, had expenses of $25,000, purchased assets with a cost of $5,000 and had owner drawings of $3,000. Net income for the year is

Name: During the year 2009, Diego Company earned revenues of $45,000, had expenses of $25,000, purchased assets with a cost of $5,000 and had owner drawings of $3,000. Net income for the year is
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Question

Quizplus · Accepted Answer

Net income is calculated as revenues minus expenses. Therefore, $45,000 (revenues) - $25,000 (expenses) = $20,000.

During the Year 2009, Diego Company Earned Revenues of $45,000