Revenue on account amounted to $5,000. Cash collections of accounts receivable amounted to $2,300. Expenses for the period were $2,100. The company paid dividends of $450. What was the amount of net income for the period?
A) $1,200
B) $2,900
C) $2,850
D) $2,450

Question

Quizplus · Accepted Answer

Net income is calculated as Revenue - Expenses. Here, revenue is $5,000 and expenses are $2,100. Therefore, net income = $5,000 - $2,100 = $2,900. Cash collections and dividends do not affect the calculation of net income.

Revenue on Account Amounted to $5,000