For the previous year, Sambino's Italian Restaurant had a total of $320,000 in expenses and $295,000 in revenues. Sambino's
A) had a net income of $325,000 for the year.
B) had a net loss of $25,000 for the year.
C) lost $25,000 in revenues.
D) acquired an additional $295,000 in assets.
E) increased its stockholders' equity by $25,000.

Question

Quizplus · Accepted Answer

The difference between revenues and expenses is the net income (or net loss) for the year. In this case, subtracting $295,000 in revenues from $320,000 in expenses results in a net loss of $25,000 for the year.

For the Previous Year, Sambino's Italian Restaurant Had a Total