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Summary Question 16 1 The basic formula for the income statement is O net worth equals assets minu $7.99   Add to cart
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Summary Question 16 1 The basic formula for the income statement is O net worth equals assets minu
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Question 16 1 The basic formula for the income statement is O net worth equals assets minus liabilitie1Question 16 1 The basic formula for the income statement is O net worth equals assets minus liabilities. total revenue minus total expenses equals net income. O operating revenue minus operating e...

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  • October 6, 2024
  • 3
  • 2024/2025
  • Summary

Subjects

  • costs
  • question 16 1 the basic formula for the income sta
  • also known as a profit and loss statement
  • is a financial document that summarizes the reven
  • and expenses incurred during a specific period of

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Question 16 1 The basic formula for the income statement is O net worth equals

assets minus liabilities. total revenue minus total expenses equals net income. O

operating revenue minus operating expense equals operating income. O assets

plus liabilities equals net income.




Answer & Explanation


The correct answer is: total revenue minus total expenses equals net income.


Explanation:


An income statement, also known as a profit and loss statement, is a financial

document that summarizes the revenues, costs, and expenses incurred during a

specific period of time. The basic formula for an income statement is:


 Total Revenue - Total Expenses = Net Income


Here's the breakdown of why this option is correct:


1. Total Revenue: This includes all the money earned by the business from

its operations before any expenses are deducted.

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