Post Utme Wellspring University 2023 Accounting Question 3

Practice objective / multiple choice question 3 from the 2023 Post Utme Wellspring University Accounting examination.

Post Utme Wellspring University 2023 Accounting Objective / Multiple Choice
Question 3 POST_UTME_WELLSPRING_UNIVERSITY • 2023 • ACCOUNTING • objective

A company's trial balance shows the following balances: Accounts Payable ₦100,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. What is the correct formula for calculating 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 + Common Stock
D. Net Income = Sales Revenue - Cost of Goods Sold - Accounts Payable + Common Stock
Correct Answer
A
Correct Option:
Net Income = Sales Revenue - Cost of Goods Sold

About This Question

This is Post Utme Wellspring University 2023 Accounting Question 3. It is one of the objective questions from the 2023 Post Utme Wellspring University Accounting examination.

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