Net income will result when
A) revenues (credits) expenses (debits)
B) revenues (debits) expenses (credits)
C) expenses (credits) = revenues (debits)
D) revenues (credits) = expenses (debits)

Question

Net income will result when
A) revenues (credits) > expenses (debits)
B) revenues (debits) > expenses (credits)
C) expenses (credits) = revenues (debits)
D) revenues (credits) = expenses (debits)

Quizplus · Accepted Answer

Net income is the amount by which revenues exceed expenses for a period of time. This means that revenues should be greater than expenses, which can be represented as credits (positive) being greater than debits (negative). Therefore, the correct choice is A.

Net Income Will Result When