Question

The income summary account has expenses of $65,000 and revenues of $55,000. The company had which of the following: Select one: a. Net income of $10,000 b. Net income of $120,000 c. Net loss of $10,000 d. Net loss of $120,000

Answer 1

Answer: Net loss of $10,000

Explanation:

From the question, we are informed that the income summary account has expenses of $65,000 and revenues of $55,000.

In this scenario, since the expense is more than the revenue, it means that there will be a net loss. Therefore, the net loss will be calculated as:

= $65,000 - $55,000

= $10,000

There's a net loss of $10,000.