Question
What is the key equation to remember regarding the income statement?
Liabilities = Retained earnings – Assets
Net income = Revenues – Expenses
Net Income = Assets – Liabilities
Income – Accounts payable
Liabilities = Retained earnings – Assets
Net income = Revenues – Expenses
Net Income = Assets – Liabilities
Income – Accounts payable
Answers
GPT-4o mini
The key equation to remember regarding the income statement is:
**Net income = Revenues – Expenses**
This equation summarizes how net income is calculated by subtracting total expenses from total revenues, providing a clear view of a company's profitability over a specific period.
**Net income = Revenues – Expenses**
This equation summarizes how net income is calculated by subtracting total expenses from total revenues, providing a clear view of a company's profitability over a specific period.