Net income equal to Revenues minus____________?
Correct answer: C. Expenses
- A. Gains
- B. Depreciation
- C. Expenses
- D. Capital expenditures
Explanation
Net income is calculated as revenues minus expenses, with gains and losses treated separately where applicable. Depreciation is only one type of expense, not the complete deduction.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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351 free Accounting Principles MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
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