Question

Refer to this income statement to answer the question below.

Forks Gym
Income Statement
For the Month Ended January 31, xxxx
Revenue:
Membership Fees Revenue
Rental Revenue
Instruction Revenue
Total Revenue 15,000.00
8,000.00
5,000.00



28,000.00
Expenses:
Advertising Expense
Rent Expense
Salaries Expense
Utilities Expense
Total Expenses 2,000.00
1,000.00
3,000.00
1,000.00




7,000.00
Net Income 21,000.00
Forks Gym has a net loss.

Responses

False
False

True
True

Answer 1

False

Forks Gym has net income of $21,000 (Revenues $28,000 − Expenses $7,000), so it does not have a net loss.