Q319
An income available for shareholders after deducting expenses and taxes from revenues is classified as
A.
net income
AnswerB.
net earnings
C.
net expenses
D.
net revenues
Answer: Option A
Solution
Answer: Option A
Solution:
An income available for shareholders after deducting expenses and taxes from revenues is classified as net income. Net income represents the amount of money remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company's total revenue.