Suppose that your net income for the month is $1,500 and that your total expenses are $2,500. Which statement is accurate?

Question

(1 point)
Responses

You have a surplus of $1,000.
You have a surplus of $1,000.

You have a surplus of $4,000.
You have a surplus of $4,000.

You have a deficit of $1,000.
You have a deficit of $1,000.

You have a deficit of $1,500.

Answer 1

To determine whether you have a surplus or a deficit, you can calculate the difference between your net income and your total expenses.

Your net income is $1,500, and your total expenses are $2,500.

To find the difference:

• Subtract your net income from your total expenses:
  $2,500 (expenses) - $1,500 (net income) = $1,000.

Since expenses exceed income by $1,000, you have a deficit.

Therefore, the accurate statement is: You have a deficit of $1,000.