Principles of Accounting
Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Chapter 3, Problem 1DQ
To determine

Explain the impact of net income on the assets and liabilities of a company.

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Explanation of Solution

Net income: Net income is the excess amount of revenue after deducting all the expenses of a company. In simple terms, it is the difference between total revenue and total expenses of the company.

The net income will either increase the assets or decrease the liabilities.

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Principles of Accounting

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