If Net Sales are 1,000,000 and All expenses are 750,000, Net Income equals:

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Multiple Choice

If Net Sales are 1,000,000 and All expenses are 750,000, Net Income equals:

Explanation:
Net income is the amount left after subtracting all expenses from revenue. Here, net sales (revenue) are 1,000,000 and expenses are 750,000. So net income = 1,000,000 − 750,000 = 250,000. This is the bottom-line figure you’d see on the income statement. The other numbers would either omit subtracting expenses or treat revenue as income, so they don’t fit the definition of net income.

Net income is the amount left after subtracting all expenses from revenue. Here, net sales (revenue) are 1,000,000 and expenses are 750,000. So net income = 1,000,000 − 750,000 = 250,000. This is the bottom-line figure you’d see on the income statement. The other numbers would either omit subtracting expenses or treat revenue as income, so they don’t fit the definition of net income.

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