Net Income Is

question 144

Multiple Choice

Net income is

• A)The excess of revenues over expenses.
• B)The same as equity.
• C)Assets minus liabilities.
• D)A revenue.
• E)The excess of expenses over revenues.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a public market, determined by the supply and demand dynamics.

Unrealized Increase

An increase in the value of an asset or investment that has not been sold or exchanged, meaning the gain is not yet reflected in income.

Allowance

In accounting, an estimate for future adjustments to assets, such as bad debt or depreciation.

Market Value

The current price at which an asset or service can be bought or sold in a public marketplace.