Under current accounting principles,how is net income on the income statement measured?
A)Net change in owners' equity during the period
B)Excess of revenues over expenses during the period
C)Net change in the cash balance during the period
D)Excess of revenues over expenses less any dividends paid during the period

Question

Quizplus · Accepted Answer

Net income on the income statement is measured as the excess of revenues over expenses during the accounting period. This is also known as the "bottom line" of the income statement, as it represents the company's profitability after all expenses have been subtracted from revenues. This measure of net income does not take into account any changes in owners' equity, cash balances, or dividends paid.

Under Current Accounting Principles,how Is Net Income on the Income