Net income refers to the:
A)difference between what was earned and the costs incurred during a period.
B)difference between the cash received and the cash paid out during a period.
C)difference between what is owned and what is owed at a point in time.
D)change in the value of the company during a period.

Question

Quizplus · Accepted Answer

Net income is the excess of revenues earned over expenses incurred during a period.Revenues do not necessarily equal cash receipts and expenses that do not necessarily equal cash disbursements.Net income does not represent the change in the company's value during the period.Assets are what the company's owns and liabilities are what it owes;the difference between the two is stockholders' equity.While a company's net income is one source of value to the company,many other determinants of its value are not included in the income statement.

Net Income Refers to The