Summary Question 16 1 The basic formula for the income statement is O net worth equals assets minu

Question 16 1 The basic formula for the income statement is O net worth equals assets minus liabilitie1Question 16 1 The basic formula for the income statement is O net worth equals assets minus liabilities. total revenue minus total expenses equals net income. O operating revenue minus operating expense equals operating income. O assets plus liabilities equals net income.Answer & ExplanationThe correct answer is: total revenue minus total expenses equals net income.Explanation:An income statement, also known as a profit and loss statement, is a financial document that summarizes the revenues, costs, and expenses incurred during a specific period of time. The basic formula for an income statement is:ï‚·Total Revenue - Total Expenses = Net IncomeHere's the breakdown of why this option is correct:1.Total Revenue: This includes all the money earned by the business from its operations before any expenses are deducted.2.Total Expenses: These are all costs incurred by the business to generate r