Question

.2 A firm earns a revenue of Rs. 5,000 and the expense to earn the revenue is Rs 3,000 Income of the firm will be : *​

Answer 1

Answer:

2000

Explanation:

Answer 2

Concept:

The money received from routine business activities is referred to as revenue, sales, or the top line.

Revenue simply includes the revenues from sales; income and profit also include the costs incurred in generating revenue and reporting net (as opposed to gross) results.

A business's operating costs incurred to generate revenue are referred to as expenses. Supplier payments, staff salaries, manufacturing leases, and equipment depreciation are examples of frequent costs.

A business's operating costs incurred to generate revenue are referred to as expenses.

Net income is the difference between a company's revenue and its costs or expenses for a given accounting period. It is sometimes referred to as a company's profit. Asset values in a corporation rise as a result of income.

Given:

Revenue 5000

Expense 3000

Find:

Income

Solution:

Income = Revenue - Expense = 5000-3000 = 2000

Income of the firm is 2000

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