### Net Income:#### Multiple ChoiceSelect the correct definition of net income from the options provided below:1. **Decreases equity.**2. **Represents the amount of assets owners put into a business.**3. **Equals assets minus liabilities.**4. **Is the excess of revenues over expenses.**5. **Represents owners' claims against assets.**To understand the term “net income,” consider the following:- **Net Income**: It is the measure of profitability for a company. Net income indicates the amount by which a company's revenues exceed its expenses. This figure is key to assessing a company's financial performance over a specified period.Choose the most accurate description from the options above to solidify your understanding of net income.

Name: ### Net Income:#### Multiple ChoiceSelect the correct definition of n
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: ### Net Income:#### Multiple ChoiceSelect the correct definition of net income from the options provided below:1. **Decreases equity.**2. **Represents the amount of assets owners put into a business.**3. **Equals assets minus liabilities.**4. **Is t

Income statement is the financial statement that helps the users to know the profitability position…

Answered: Decreases equity. Represents the amount…

Business

Accounting

Decreases equity. Represents the amount of assets owners put into a business. Equals assets minus liabilities. Is the excess of revenues over expenses. Represents owners' claims against assets.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In which of the following cases will the business have Net profit ? a. Expenses are equal to income O b. Expenses are greater than income Expenses are less than revenue O d. Liabilities are greater than income
Expenses are the cost of providing goods and services and result in: A.increased assets or decreased liabilities B.decreased assets or increased liabilities C.decreases in both assets and liabilities D.increases in both assets and liabilities
In which ways is the balance sheet impacted when by creating and depreciating assets? A) Assets decrease as the cash balance decreases when cash is spent on Capex B) Assets increase when capex is added to the fixed asset balance C) Equity decreases through retained earnings balance as depreciation is expensed in the P&L D) Assets decrease when the fixed asset balance as depreciation reduces the balance O A only O B only O Conly OD only O A, B, and D only OB and D only O All of the above
Net working capital increases when: A. a credit customer pays for his or her purchase B. inventory is sold at cost. C. fixed assets are purchased for cash D. inventory is purchased on credit
Assets are a.always lower than liabilities b.equal to liabilities less stockholders' equity c.the same as expenses because they are acquired with cash d.financed by the stockholders and/or creditors
Which statement is incorrect? a. Under the transactions approach, net income is computed as the excess of income over expenses b. Under the capital maintenance approach, net income is computed as the excess of ending capital over beginning capital, excluding the effect of investments and withdrawals by owners. c. Unusual and infrequent items of expenses should be presented in in the income statement as a component of income from continuing operation. d. The single statement of comprehensive income shows a detailed presentation of all income and expenses, regardless of whether these income and expenses are recognized or not in the profit or loss. e. None of the above Statement 1: In the statement of changes in equity, the effect of the correction of a prior period error is presented separately for each component of equity. Statement 2: Preference share dividend appear under the retained earnings section of the statement of changes in equity. a. True, True b. False,…
Revenue will be recognized when the following occurs as a result of a business activity with a customer: a) There is an increase in assetsb) There is an increase in liabilities c) There is a decrease in assetsd) none of these
The cost of new non-current assets is a cash payment not an expense in the statement of profit or loss? True False
None
Which of the following decrease owner's equity or stockholder's equity? A. Paying cash to vendors. B. Paying cash to clients. C. Revenue. D. Expenses.
Which of the following is FALSE regarding the financial statements?
Net loss: A. Decreases equity. O B. Equals assets minus liabilities. O C. Represents the amount of assets owners put into a business. O D. Is reported when revenues are larger than expenses.