Question

question 21 of 25
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net income results when
revenues = expenses.
assets > liabilities.
revenues > expenses.
revenues expenses.
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Explanation:

To determine when net income occurs, we recall the definition of net income: Net Income = Revenues - Expenses. If revenues are greater than expenses (Revenues > Expenses), then Revenues - Expenses will be positive, resulting in net income. If revenues equal expenses, net income is zero (break - even). If revenues are less than expenses, we have a net loss. The option "Assets > Liabilities" relates to the accounting equation (Assets = Liabilities + Equity) and not directly to net income calculation. The option with "Revenues Expenses" is an incomplete expression.

Answer:

C. Revenues > Expenses.