Question

The amount of assets created through performance of business operations is referred to as a.​expenses. b.​revenue....

The amount of assets created through performance of business operations is referred to as
a.​expenses.
b.​revenue.
c.​net income.
d.​liabilities.
e.​capital.
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Homework Answers

Answer #1

There are many sources of creating assets in the business like

(i) Owners Capital invested at the start of business or any time after that;

(ii) Borrowing through bank loans Debentures(in case of companies) etc

(iii) Profits of the business generated through the performance of business operations(profits may be distributed as dividend to the shareholders or may be retained in the business itself for the use. When the profits are retained in the business, obviously these represent the assets of the business.

Hence

The amount of assets created through performance of business operations is referred to as net income.

Answer is (C) Net income.

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