Question

Lauren is trying to find her net income. She used the statement and the steps shown.

Step 1

List all income, including tips and commissions, and list all expenses, including food, entertainment, and clothing.

Step 2

Total all the income. Then total all the expenses.

Step 3

Add the total of the income and the expenses.




Which explains Lauren’s error?

Lauren made an error in step 1 because she should not include tips and commissions in her income.

Lauren made an error in step 1 because she should not include entertainment in her expenses.

Lauren made an error in step 2 because she does not need to total the expenses.

Lauren made an error in step 3 because she should have subtracted the expenses from the income.

Answer 1

It's D

Step-by-step explanation:

Answer 2

Lauren made an error in step 3 because she should have subtracted expenses from income.

Net income = (Total of all sources of income)- (Total of all bills and expenses)

You must subtract expenses because they are things you are paying for.