Net Income

question 41

Multiple Choice

Net income:

• A)Occurs when revenues exceed expenses.
• B)Is the same as revenue.
• C)Equals resources owned or controlled by a company.
• D)Occurs when expenses exceed assets.
• E)Represents assets taken from a company for an owner's personal use.

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Definitions:

Total Benefits

The complete gains or advantages, in terms of money, comfort, or welfare, obtained from a particular action or investment.

Market Equilibrium

A condition in which the quantity of goods supplied is equal to the quantity demanded, often resulting in an optimal price for products or services.

Purely Competitive Market

A market structure characterized by a large number of small firms, identical products, and free entry and exit, leading to price determination by supply and demand.

Equilibrium Output

The level of output where the quantity of goods produced equals the quantity of goods consumed, and the market is in balance.