The formula for calculating surplus (loss) is
A)total income minus total expenses.
B)assets minus liabilities.
C)total income minus liabilities.
D)assets minus total expenses.

Question

Quizplus · Accepted Answer

Surplus (profit) or Loss is calculated by subtracting total expenses from total income. Therefore, option A is the correct answer. Option B and D are related to calculating net worth or equity, whereas option C is not relevant to the calculation of surplus or loss.

The Formula for Calculating Surplus (Loss) Is