Post Utme Bowen University 2023 Accounting Question 2

Practice objective / multiple choice question 2 from the 2023 Post Utme Bowen University Accounting examination.

Post Utme Bowen University 2023 Accounting Objective / Multiple Choice
Question 2 POST_UTME_BOWEN_UNIVERSITY • 2023 • ACCOUNTING • objective

A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦120,000. What is the correct formula to calculate the company's net income?

Answer Options

Correct Answer A. Net Income = Sales Revenue - Cost of Goods Sold
B. Net Income = Sales Revenue - Cost of Goods Sold - Accounts Payable
C. Net Income = Sales Revenue - Cost of Goods Sold + Accounts Receivable
D. Net Income = Sales Revenue - Cost of Goods Sold - Accounts Receivable
Correct Answer
A
Correct Option:
Net Income = Sales Revenue - Cost of Goods Sold

About This Question

This is Post Utme Bowen University 2023 Accounting Question 2. It is one of the objective questions from the 2023 Post Utme Bowen University Accounting examination.

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