A Retailer Will Use Which Specific Term for Income

question 3

Multiple Choice

A retailer will use which specific term for income?

• A) sales.
• B) revenue.
• C) fees income.
• D) service income.

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Definitions:

Net Income

The total earnings of a company after subtracting all costs and expenses, including taxes and interest, from its total revenues.

Balance Sheet Columns

The sections within a balance sheet that display a company's assets, liabilities, and shareholders' equity at a specific point in time.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.

Current Assets

Resources owned by a company that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of the business.