Which of the following is the equation for determining ne...
Which of the following is the equation for determining net profit or loss from the records of a firm?
Closing Capital - Drawings - Capital Introduced
Opening Capital + Drawings - Closing Capital
Closing Capital + Opening Capital - Drawings
Closing Capital + Drawings - Opening Capital
Correct answer is C
Your net income or net loss equals your total revenues minus your total expenses for an accounting period. If your revenues are greater than expenses, you have net income. If revenues are less than expenses, you have a net loss. example
Net profit or loss = Revenue - total expenses