Question

what is the formula for determining net income? net income = income - cost of goods sold - expenses net income = income - cost of goods sold × expenses net income = income × cost of goods sold × expenses net income = income + cost of goods sold + expenses

Explanation:

To determine net income, we start with total income, then subtract the cost of goods sold (the direct costs of producing goods) and then subtract all other expenses (like operating, administrative, etc.). So the correct formula is Net income = Income - Cost of goods sold - Expenses. The other options use incorrect operations (multiplication or addition of costs/expenses which doesn't align with net income calculation).

Answer:

Net income = Income - Cost of goods sold - Expenses (the first option among the given choices)