Question

Net income is ______. (Check all that apply.) expenses minus revenues assets minus liabilities assets plus liabilities revenues minus expenses net earnings equal to the company's cash balance

Answer 1

Answer:

The correct option is;

Revenues minus expenses

Explanation:

The Net Income (NI), of a business is calculated by first calculating the company's total revenue, then deducting from the calculated company's total revenue, the following items to find the earnings before tax;

1) Operating costs

2) Business expenses

3) Operating costs

The net income is then found by deducting the tax from the calculated net earnings.

The Net Income is also known as the bottom line of the business as it comes at the bottom line after subtracting the expenses, interests,  taxes, from the total revenue.