Question

Consider the overall effects on National Cleaning Service from selling and performing services on account for $ 7 comma 770 and paying expenses totaling $ 3 comma 040. What is National Cleaning​ Service's net income or net​ loss? A. Net income of $ 10 comma 810 B. Net loss of $ 4 comma 730 C. Net income of $ 4 comma 730 D. Net income of $ 7 comma 770

Answer 1

Option C, National Cleaning​ Service's net income is 4,730

Solution:

The money a person earns, after deducting taxes and other deductions from gross revenue, is net income – also known to as the net profit, the net income or the bottom line.

For a company, the amount of income left after all costs, taxes and liabilities have been reduced is net income.

Net Income/Net Loss = Revenues - Expenses

Net Income/Net Loss = 7,770 - 3,040

*Net Income = 4,730

National Cleaning​ Service's net income is 4,730