If expenses increase while revenue remains constant, net income will

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Prepare for the WGU ACCT2350 Intro to Business Accounting Exam. Practice with multiple choice questions and detailed solutions to sharpen your accounting skills. Master your exam with confidence!

Multiple Choice

If expenses increase while revenue remains constant, net income will

Explanation:
Net income is what you get when you subtract expenses from revenue. If revenue stays the same but expenses go up, that subtraction leaves a smaller number, so net income decreases. For example, with revenue of 100 and expenses of 70, net income is 30. If expenses rise to 80, net income drops to 20. If expenses go even higher, net income could turn negative, showing a loss. The result here is a decrease in net income, not an increase, no change, or a doubling.

Net income is what you get when you subtract expenses from revenue. If revenue stays the same but expenses go up, that subtraction leaves a smaller number, so net income decreases. For example, with revenue of 100 and expenses of 70, net income is 30. If expenses rise to 80, net income drops to 20. If expenses go even higher, net income could turn negative, showing a loss. The result here is a decrease in net income, not an increase, no change, or a doubling.

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