What is X-cel Company's net income or net loss if it had Revenue of $2,200, Salary Expense of $700, Utility Expense of $350, and Withdrawals of $3,000 during October?
A) $1,850 net income
B) $1,150 net loss
C) $1,150 net income
D) $1,850 net loss

Question

Quizplus · Accepted Answer

Net income is calculated by subtracting total expenses from total revenue. Here, total expenses are $700 (Salary Expense) + $350 (Utility Expense) = $1,050. Subtracting this from the Revenue of $2,200 gives a net income of $1,150. Withdrawals do not affect the calculation of net income or net loss.

What Is X-Cel Company's Net Income or Net Loss If