Net Income Refers to The

question 74

Multiple Choice

Net income refers to the:

• A)difference between what was earned and the costs incurred during a period.
• B)difference between the cash received and the cash paid out during a period.
• C)difference between what is owned and what is owed at a point in time.
• D)change in the value of the company during a period.

---

Definitions:

Multiple-Step Statement

An income statement that separates operating revenues and expenses from non-operating ones, providing a detailed view of a company's financial performance.

Operating Expenses

Expenses incurred during the normal course of business operations, excluding production costs, and typically include items like rent, utilities, and payroll.

Loss On Sale

Occurs when the selling price of an asset is less than its carrying amount on the books, resulting in a financial loss.

Multiple-Step Statement

An income statement that provides a detailed breakdown of revenues, expenses, gains, and losses, resulting in the net income.