Net income occurs when revenues exceed expenses.

Net Income

The amount of earnings remaining after all expenses, including taxes and costs, have been subtracted from total revenue.

Revenues

The total amount of money received by a company for goods sold or services provided during a specific period, before any deductions.

Expenses

Costs incurred in the process of earning revenue, such as rent, utilities, and salaries.

Gain an understanding of the ideas pertaining to net income, net loss, and how they influence equity.

Verified Answer

Final Answer :

True

Explanation :

This is the definition of net income, also known as profit, and is calculated by subtracting expenses from revenues.

Learning Objectives

Gain an understanding of the ideas pertaining to net income, net loss, and how they influence equity.