What is the correct meaning of income in a business?
Answer and explanation
Correct answer: Amount earned from sales or services
Income is the amount earned by a business from its regular activities, such as selling goods or providing services. It represents an inflow related to earning, although income is not the same as profit. Profit is calculated after deducting expenses from income. Therefore, option A is correct; loss and expense are different concepts, while the remaining option does not describe business income.
Frequently asked questions
What is the correct answer to this question?
Amount earned from sales or services
Why is this the correct answer?
Income is the amount earned by a business from its regular activities, such as selling goods or providing services. It represents an inflow related to earning, although income is not the same as profit. Profit is calculated after deducting expenses from income. Therefore, option A is correct; loss and expense are different concepts, while the remaining option does not describe business income.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Sources of Business Finance. Topic: Concept, nature and importance of business finance.
