Which of the following equations best describes the income statement?

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answerhappygod
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Which of the following equations best describes the income statement?

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A) Assets − Liabilities = Stockholders' Equity.
B) Net income = Revenues + Expenses.
C) Net income = Revenues − Expenses.
D) Retained earnings = Net Income + Dividends.
Answer: C
Explanation: The income statement equation is revenues − expenses = net income.
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