Accountıng I Deneme Sınavı Sorusu #1313592
Net income results ______________.
Which of the following completes the statement above?
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when revenues exceed expenses |
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when expenses exceed revenues |
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when revenue equals to the expense |
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when owner’s equity decreases |
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when owner’s equity remains the same |
Yanıt Açıklaması:
Net income results when revenues exceed expenses and loss results when expenses exceed revenues. In this sense, net income increases owner’s equity while loss decreases owner’s equity. Therefore, net income or loss is the financial result of the performance of a business in a given period.
The correct answer is A.
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