alleryA statement of profit or loss shows Fees Earned of $30,000 and total operating expenses of $17,000. What is net income?
A$13,000
B$47,000
C$17,000
D$30,000
Answer & Solution
Correct answer: A. $13,000
1. Net income equals $\text{Revenue} - \text{Expenses}$.
2. Substitute: $30{,}000 - 17{,}000 = 13{,}000$.
3. Option A wrongly adds revenue and expenses; options C and D simply repeat input figures.
4. Therefore net income is $13,000.
_Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §1.4.1 "Income Statement", p.22_
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