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Net Income = Sales - Expenses

So as many expanses net income will be lower.

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15y ago

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A company's month-end adjusting entry for Insurance Expense is 1000 If this entry is not made then expenses are understated by 1000 and net income is overstated by 1000?

Yes this is right statement as if some expenses are forgot to record it overstated the net income and reduces the expenses but in actual there is less net income then shown in income statement.


Failure to record a liability will probably?

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If the amount of uncollectible account expense is understated at year end?

net Accounts Receivable will be overstated.


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What happens to net income if inventory is understated?

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What effect does depreciation expense have on net income and cash flow?

Depreciation Expense reduces net income and has no effect on cash flow.


What is revenue minus net income?

EXpense


What does Revenue less expense equal?

net income


Where do the Maintenance expense go on the financial statement?

Maintence Expense is just like any other expense and will be reported on the income statement and deducted from Gross Income to obtain Net Income...


What accounts are in net income?

Included in net income are the following: 1. All revenue-related accounts, e.g. Sales, service revenue, interest income, rental income, etc. 2. All expense-related accounts, e.g. Purchases, Depreciation, Rental expense, Maintenance expense, Amortization, Utilities expenses, etc. Net income = Revenues - Expenses


What is the difference between revenue and expense called?

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