Net income or net loss is the difference between total revenue and total expenses over a specific period of time. True or false?
Net income or net loss is the difference between total revenue and total expenses over a specific period of time. True or false?
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter2: Analyzing Transactions: The Accounting Equation
Section: Chapter Questions
Problem 7TF: When total revenues exceed total expenses, the difference is called net loss.
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Net income or net loss is the difference between total revenue and total expenses over a specific period of time.
True or false?
Expert Solution
Step 1
Net income is the income earned by a business during a accounting period.
Net income or loss is computed as = Revenue - Expenses
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