Losses have the effect of reducing net income,while gains increase net income.

Name: Losses have the effect of reducing net income,while gains increase net income.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Net income is calculated by subtracting total expenses (including losses) from total revenue (including gains). Therefore, losses decrease the amount of revenue available to cover expenses, resulting in lower net income. Conversely, gains increase the amount of revenue available to cover expenses, resulting in higher net income.

Losses Have the Effect of Reducing Net Income,while Gains Increase