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View Full Version : Can net income be assets in excess of liabilities?


seniorlaker88
Apr 25, 2014, 07:28 AM
I know that the net income is assets minus liabilities but the exam has four choices and I chose asset in excess of liabilities. Is that correct?

ebaines
Apr 25, 2014, 08:47 AM
I know that the net income is assets minus liabilities ..

No it's not. Net income is income minus cost of goods sold, expenses, and taxes. Assets minus liabailities is equity.