Question

a business has total revenues of $55,000 and total expenses of $63,000. what is the net income or net loss? a. $11800b.-$11800c. $8000d.-$8000

Answer 1

Recall that:

`NetIncome=Revenues-Expenses.`

Since the business has a total revenue of $55,000 and total expenses of $63,000, therefore the net income is:

`\begin{gathered} NetIncome=\text{ \$}55,000-\text{ \$}63,000 \\ =-\text{ \$}8000. \end{gathered}`

Answer: Option D.