Chapter 1 Discussion Questions
1.Define Net Income and explain its computation.
-Net income is the companys total earnings after expenses. It occurs when revenue exceeds
expenses. When it is the opposite, it is a net loss. Revenue-Expenses=Net Income
Accounting is whatever you want it to be because you can move it around any
Something that can be an asset can be an expense.not at the same time but on diff.
statements put an expense as an asset
Ex: a chair with a life of 3 years and a 90 dolla