Questions: A company is trying to determine its net income. To figure out this value, the company should equate the total profit or loss minus Multiple Choice assets and liabilities. equity. sales. expenses, including taxes. income and profits.

The answer is the fourth one: expenses, including taxes.

Explanation for each option:

1. Assets and liabilities: These are components of the balance sheet, not directly related to calculating net income. Assets are what the company owns, and liabilities are what it owes. They do not directly affect the calculation of net income.

2. Equity: This represents the ownership value in the company after liabilities are subtracted from assets. It is not used to calculate net income.

3. Sales: Sales, or revenue, is the total amount of money generated from selling goods or services. While sales are part of the income statement, net income is calculated by subtracting expenses from sales, not just equating sales.

4. Expenses, including taxes: This is the correct answer. Net income is calculated by subtracting all expenses, including taxes, from total revenue. This gives the profit or loss after all costs have been accounted for.

5. Income and profits: This is a redundant option because net income itself is a measure of profit. It does not help in calculating net income.

In summary, to determine net income, a company should subtract expenses, including taxes, from its total revenue.