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

Question

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

Quizplus · Accepted Answer

Net income is the excess of revenues over expenses. This means that when revenues are greater than expenses, there is a net income. Therefore, when revenues (credits) > expenses (debits), net income will result.

Net Income Will Result When