Which of the following accounts is not included in the calculation of net income?
A) Rent expense.
B) Cash.
C) Rent revenue.
D) Services revenue.
E) Wages expense.

Question

Quizplus · Accepted Answer

Cash is not an account that is included in the calculation of net income. Net income is calculated by subtracting all expenses (such as rent expense, wages expense) from all revenues (such as rent revenue, services revenue), not by including the balance of the cash account.

Which of the Following Accounts Is Not Included in the Calculation