The excess of revenue over the expenses incurred in earning the revenue is called capital. True False

Question

Lorelei Vincent

Business

1 December, 01:10

The excess of revenue over the expenses incurred in earning the revenue is called capital. True False

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Answers (1)

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Maryjane Ashley · Answer 1

The statement is: False.

Explanation:

Net Income is the result of subtracting a company's expenses in generating income from the total revenue and deducting taxes from that figure. The net income may be distributed as a dividend among common stock shareholders or retained by the company. Instead, capital refers to financial resources such as equity, debt, trading, and working capital.