ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When income is greater than expenses
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net gain
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mortgage
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expense
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None of the above
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Explanation:
Detailed explanation-1: -Better, although usually harder, choices are to increase income or decrease expenses. Figure 2.3 “Budget Deficit” shows the choices created by a budget deficit. When income for a period is greater than expenses, there is a budget surplusAn excess of available funds created when income is greater than the expenses..
Detailed explanation-2: -A net income results when revenue is larger than expenses. On the other hand, if expenses are larger than revenue, a net loss results.
Detailed explanation-3: -When revenue is greater than total expenses, resulting in a net income, the Income Summary account has a credit balance, as shown in the T account.
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