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 net income for the period?
A)$1,200
B)$2,900
C)$2,850
D)$2,450

Question

Quizplus · Accepted Answer

Net income = Revenue of $5,000 - Expenses of $2,100 = $2,900;dividends decrease retained earnings but do not affect net income.

Revenue on Account Amounted to $5,000