Net Income or Net Loss for a Period Is Calculated

question 95

Multiple Choice

Net income or net loss for a period is calculated by the following formula:

• A)total revenues - total liabilities.
• B)total revenues - total expenses - total withdrawals + assets.
• C)total revenues - total expenses.
• D)total revenues - total expenses + capital.

---

Definitions:

Company

A legal entity formed by individuals, stockholders, or shareholders, with the purpose of operating for profit, engaging in commercial and industrial activities.

Straight-Line Amortization

A method of allocating the cost of an intangible asset evenly over its useful life.

Bond Payable

A long-term liability account that represents the amount a company owes to bondholders, to be repaid at a future date.

Issue Price

The issue price is the price at which a company's securities, such as stocks or bonds, are first offered for sale to the public when they are issued.