Question

A firm earns a revenue of Rs.50,000 and the expenses to earn this revenue are Rs.30,000. calculate its income.

Answer 1

Answer:

The required income of the firm is $Rs.20,000$.

Explanation:

Concept:

Income is equal to revenues less expenses since revenues are the exact opposite of expenses. The total income derived from the sale of products or services pertaining to a business's core operations is referred to as revenue. Because it appears at the top of the income statement, revenue, also known as gross sales, is frequently referred to as the "top line." A company's overall earnings or profit are referred to as income, or net income.

Given:

A firm earns a revenue $= Rs. 50,000$

The expenses $=Rs.30,000.$

To find:

We have to calculate the income of the firm.

Solution:

To calculate income apply formula,

$Income=Revenue - Expenses$

$=50,000 – 30,000\\=20,000$

Hence, the income of the firm is $Rs.20,000$.

#SPJ3