Revenue on account amounted to $5,600. Cash collections of accounts receivable amounted to $3,500. Expenses for the period were $2,900. The company paid dividends of $850. What was net income for the period?
A)$600
B)$2,650
C)$2,700
D)$1,850

Question

Quizplus · Accepted Answer

Net income is calculated as total revenue minus total expenses. Revenue on account is $5,600, and expenses are $2,900. Therefore, net income is $5,600 - $2,900 = $2,700. Dividends do not affect net income calculation.

Revenue on Account Amounted to $5,600