During January, Bruni Corporation earned revenue of €45,000, incurred expenses of €22,000, and paid dividends of €3,000.The income statement will report net income for the month of

Question

Quizplus · Accepted Answer

To calculate the net income, we need to subtract expenses from revenues and then subtract dividends paid.

Net Income = Revenues - Expenses - Dividends Paid
Net Income = €45,000 - €22,000 - €3,000
Net Income = €20,000

Therefore, the net income for the month of January is €20,000. Choice A is incorrect as it does not take into account the dividends paid. Choice B is correct. Choice C is incorrect as the net income cannot be higher than the total revenues earned. Choice D is incorrect because it only includes revenue and not expenses or dividends.

During January, Bruni Corporation Earned Revenue of €45,000, Incurred Expenses