Net income results when:
A) total revenue is less than total expenses over the period.
B) total revenue exceeds total expenses over the period.
C) total revenue is less than total liabilities over the period.
D) total revenue exceeds total liabilities over the period.

Question

Quizplus · Accepted Answer

Net income is the excess of total revenues over total expenses for a period, indicating profitability. Therefore, option B, "total revenue exceeds total expenses over the period," is the correct answer.

Net Income Results When