If Revenues are 80,000 and Expenses 65,000, what is the Net Income?

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Prepare for the YouScience Accounting 1 Test. Enhance your skills with interactive flashcards, multiple choice questions, and detailed explanations. Get exam-ready efficiently!

Multiple Choice

If Revenues are 80,000 and Expenses 65,000, what is the Net Income?

Explanation:
Net income shows profitability by subtracting expenses from revenues. With revenues of 80,000 and expenses of 65,000, the calculation is 80,000 minus 65,000, which equals 15,000. This positive result means the business earned more than it spent. The other numbers don’t fit this calculation: 0 would mean revenues and expenses are the same, which isn’t true here; 130,000 isn’t derived from subtracting expenses from revenues; and -15,000 would indicate a loss, which would require expenses to exceed revenues. So the net income is 15,000.

Net income shows profitability by subtracting expenses from revenues. With revenues of 80,000 and expenses of 65,000, the calculation is 80,000 minus 65,000, which equals 15,000. This positive result means the business earned more than it spent. The other numbers don’t fit this calculation: 0 would mean revenues and expenses are the same, which isn’t true here; 130,000 isn’t derived from subtracting expenses from revenues; and -15,000 would indicate a loss, which would require expenses to exceed revenues. So the net income is 15,000.

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