Question

Net income equals: Question 2 options: Cash receipts minus cash payments. Assets minus liabilities. Revenues minus cost of goods sold. Revenues minus expenses.

Answer 1

Answer:

Revenues minus expenses.

Explanation:

Net income = Revenue -  (cost of goods sold + selling, general and administrative expenses + depreciation + net interest expense + income tax)

Revenues minus cost of goods sold gives gross profit

Assets minus liabilities gives shareholders equity