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AssignmentMultiple Choice

Principles of Financial Planning

Question 1 • Personal Finance - EL3403

Consider Adam’s income statement. Which shows how to calculate Adam’s net income?

Answer
A
$1,310 - $3,100 = -$1,790
B
$3,100 + $1,310 = $4,710
C
$3,100 - $1,310 = $1,790
D
$4,710 - $3,100 = $1,610

Explanation

Net income is calculated by subtracting expenses from income. Adam’s income is $3,100 and his expenses are $1,310, so $3,100 − $1,310 = $1,790. Choice C shows the calculation.

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