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During the year a business recorded $100,000 in revenues, $55,000 in expenses, and dividends of $10,000. What would be the net income?

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Question ajoutée par Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date de publication: 2015/07/08
Utilisateur supprimé
par Utilisateur supprimé

b. $45,000 Thus Revenue $100,000 - Expenses $55,000. Dividend is not an expense treated in the income or profit or loss statement to obtain net income. It occures in the statement of changes in equity which will give a retained earnings of $35,000 thus net income $45,000 - $10,000

Shahbaz Hayder
par Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes, Option B is the right answer.

SUNIT BANERJEE
par SUNIT BANERJEE , Chief Financial Officer , Sportind Global Private Limited

b) $45000

The Dividend show up in the Statement of Retained Earnings, or the Statement of Changes in Equity, depending on what you use. Dividends are a distribution of profit, that is not an expense or a loss. So it will not comes in  Income Statement.

Mark Angelo Damuag
par Mark Angelo Damuag , Financial Analyst , Evacare Management Consultancy Inc

It would be b. $45,000.....

Saurabh Aggarwal
par Saurabh Aggarwal , Associate Manager , Ernst & Young LLP

Answer is (b). Net income is45000$ as dividends is the form of earnings to shareholders, thus not deducted while calculating net income,

Abdul Qadir Tanoli
par Abdul Qadir Tanoli , Finance & Admin Officer , ROYAL LAND PROPERTY

Obviously option B because income100,000 and here expense is55,000 Less expense from income i.e45,000 And dividend not deducted from net income

mehfooz alam khan habib khan
par mehfooz alam khan habib khan , Security Incharge , Landmark Group (Emax)

Answer is option B. Because dividened on common stocks will not deduct from income statement.

Ahmed kandil
par Ahmed kandil , Cost Controller , Battour Holding Cpompany

Correct answer is45000 thank you

Zehab Osman
par Zehab Osman , Accountant , Aldar Consultancy Co.

B----------------------------------------

Utilisateur supprimé
par Utilisateur supprimé

The total income is $100000 and expenses are $55000 and dividend is $10000,So in this case the income of firm is option B $45000

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