Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

The Financial Statements

Financial Accounting

1. Introduction to Accounting

The Financial Statements

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Multiple Choice

At December 31, 2017, Hawke Company reports the following results for its calendar year: Revenues of \$120,000, Expenses of \$85,000, and Dividends of \$10,000. What is the amount of net income reported on the income statement for the year ended December 31, 2017?

$120,000

$45,000

$35,000

$25,000

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Verified step by step guidance

Step 1: Understand the components of the income statement. Net income is calculated as Revenues minus Expenses. Dividends are not included in the calculation of net income because they are distributions of earnings, not expenses.

Step 2: Identify the given values from the problem. Revenues are $120,000, Expenses are $85,000, and Dividends are $10,000.

Step 3: Apply the formula for net income: $ \text{Net Income} = \text{Revenues} - \text{Expenses} $. Using MathML, the formula is:

Net Income = Revenues - Expenses

Step 4: Substitute the given values into the formula. Revenues are $120,000 and Expenses are $85,000. Dividends are not part of this calculation.

Step 5: Perform the subtraction to find the net income. The result will be the difference between Revenues and Expenses, which is $ \text{Net Income} = \$120,000 - \$85,000 $.