Question

Which of the following equations correctly describes how to calculate net income?

a. net income = (cost of goods sold) - (net sales) - (operating expenses)
b. net income = (operating expenses) - (cost of goods sold) - (net sales)
C. net income = (operating expenses) + (cost of goods sold) - (net sales)
d. net income = (net sales) - (cost of goods sold) - (operating expenses)

Answer 1

The correct equation to calculate net income is (net sales) - (cost of goods sold) - (operating expenses).

Step-by-step explanation:

The correct equation to calculate net income is d. net income = (net sales) - (cost of goods sold) - (operating expenses). Net income is the final result after subtracting the cost of goods sold and operating expenses from the net sales. This equation is commonly used in accounting to determine the profitability of a business.

Answer 2

Answer: D

Step-by-step explanation: