Use the following information to calculate the company's accounting net income for the year.

A) $300,000
B) $240,000
C) $125,000
D) $120,000

Question

Use the following information to calculate the company's accounting net income for the year.

A) $300,000 
B) $240,000 
C) $125,000 
D) $120,000

Quizplus · Accepted Answer

Accounting net income is calculated by subtracting operating expenses, interest expense, and taxes from a company's revenues. 
In this case, revenues are given as $620,000, and total operating expenses ($250,000), interest expense ($30,000), and taxes ($100,000) are provided. 
Therefore, accounting net income would be:
$620,000 - $250,000 - $30,000 - $100,000 = $240,000
Thus, the correct answer is B.

Use the Following Information to Calculate the Company's Accounting Net