Which of the following is an example of business income?

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Multiple Choice

Which of the following is an example of business income?

Explanation:
Revenue from selling goods or providing services is how a business earns income. A payment from a customer for goods sold is exactly that—receiving money in exchange for products is revenue, which increases the business’s earnings. A loan from a bank isn’t income; it’s financing that creates a liability and must be repaid. A tax payment is an expense, not income, and depreciation expense also reduces reported income as an accounting cost rather than adding to it.

Revenue from selling goods or providing services is how a business earns income. A payment from a customer for goods sold is exactly that—receiving money in exchange for products is revenue, which increases the business’s earnings. A loan from a bank isn’t income; it’s financing that creates a liability and must be repaid. A tax payment is an expense, not income, and depreciation expense also reduces reported income as an accounting cost rather than adding to it.

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