Question

A.

Which of the following equations correctly describes how to calculate net income?
net income = (cost of goods sold) - (net sales) - (operating expenses)
b. net income = (operating expenses) - (cost of goods sold) - (net sales)
net income = (operating expenses) + (cost of goods sold) - (net sales)
d. net income = (net sales) - (cost of goods sold) - (operating expenses)
C.
Please select the best answer from the choices provided
Ο Α
B
OD

Answer 1

net income = (cost of goods sold) - (net sales) - (operating expenses)

Explanation:

because income is based on sales, thus the cost of how much you got minus all the expenses must be the net income.