Question
What is the key equation to remember regarding the income statement?
Net income = Revenues – Expenses
Liabilities = Retained earnings – Assets
Income – Accounts payable
Net Income = Assets – Liabilities
Net income = Revenues – Expenses
Liabilities = Retained earnings – Assets
Income – Accounts payable
Net Income = Assets – Liabilities
Answers
GPT-4o mini
The key equation to remember regarding the income statement is:
**Net income = Revenues – Expenses**
This equation summarizes the fundamental relationship in the income statement, which shows how much profit a company generates after deducting its expenses from its revenues.
**Net income = Revenues – Expenses**
This equation summarizes the fundamental relationship in the income statement, which shows how much profit a company generates after deducting its expenses from its revenues.