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To find the net income we deduct _________ from total revenue.
- a)Capital expenditure
- b)Expenses
- c)Depreciation
- d)Gains
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
To find the net income we deduct _________ from total revenue.a)Capita...
To calculate net income for a business, start with a company's total revenue. From this figure, subtract the businesses expenses and operating costs to calculate the business's earnings before tax. Deduct tax from this amount to find the business's net income.
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To find the net income we deduct _________ from total revenue.a)Capita...
Finding Net Income in Commerce
Definition:
Net income is the amount of money that a company has earned after deducting all of its expenses from its total revenue.
Deductions:
To calculate net income, we need to deduct various expenses from total revenue. These expenses include:
- Expenses: This includes all costs that are incurred by the company in running its business operations. Examples of expenses include salaries, rent, utilities, and office supplies.
- Depreciation: This is the decrease in value of assets over time due to wear and tear. Depreciation is considered an expense and is deducted from revenue to calculate net income.
- Gains: Gains are increases in the value of assets or investments. However, gains are not included in net income calculation as they are not considered regular business income.
Calculation:
To calculate net income, we use the following formula:
Net Income = Total Revenue - Total Expenses
By deducting all expenses from total revenue, we arrive at the net income figure. This number represents the company's profit after all expenses have been taken into account.
Conclusion:
In conclusion, to find the net income, we need to deduct all expenses from total revenue. This is the amount of money that the company has earned after all costs have been taken into account. By regularly calculating net income, a company can track its financial performance and make better decisions about its future.
Definition:
Net income is the amount of money that a company has earned after deducting all of its expenses from its total revenue.
Deductions:
To calculate net income, we need to deduct various expenses from total revenue. These expenses include:
- Expenses: This includes all costs that are incurred by the company in running its business operations. Examples of expenses include salaries, rent, utilities, and office supplies.
- Depreciation: This is the decrease in value of assets over time due to wear and tear. Depreciation is considered an expense and is deducted from revenue to calculate net income.
- Gains: Gains are increases in the value of assets or investments. However, gains are not included in net income calculation as they are not considered regular business income.
Calculation:
To calculate net income, we use the following formula:
Net Income = Total Revenue - Total Expenses
By deducting all expenses from total revenue, we arrive at the net income figure. This number represents the company's profit after all expenses have been taken into account.
Conclusion:
In conclusion, to find the net income, we need to deduct all expenses from total revenue. This is the amount of money that the company has earned after all costs have been taken into account. By regularly calculating net income, a company can track its financial performance and make better decisions about its future.
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To find the net income we deduct _________ from total revenue.a)Capita...
Because expenses are debited to profit and loss account nd by deducting expenses from total revenue we found net income
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To find the net income we deduct _________ from total revenue.a)Capital expenditureb)Expensesc)Depreciationd)GainsCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about To find the net income we deduct _________ from total revenue.a)Capital expenditureb)Expensesc)Depreciationd)GainsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for To find the net income we deduct _________ from total revenue.a)Capital expenditureb)Expensesc)Depreciationd)GainsCorrect answer is option 'B'. Can you explain this answer?.
To find the net income we deduct _________ from total revenue.a)Capital expenditureb)Expensesc)Depreciationd)GainsCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about To find the net income we deduct _________ from total revenue.a)Capital expenditureb)Expensesc)Depreciationd)GainsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for To find the net income we deduct _________ from total revenue.a)Capital expenditureb)Expensesc)Depreciationd)GainsCorrect answer is option 'B'. Can you explain this answer?.
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