Marissa is taking her first course in accounting this semester. One of the first things she learns is that revenue and net income mean the same thing.

Question

Quizplus · Accepted Answer

Although both of these accounts are noted on the income statement, they mean different things. Revenues are the money coming into the business from the sale of goods and services. Net income is calculated by subtracting the cost of goods sold, operating expenses, and taxes from the revenues.

Marissa Is Taking Her First Course in Accounting This Semester