Net income is the total profit a company makes after deducting all expenses, taxes, and costs from its total revenue. It is often referred to as the bottom line or net profit.
5 Must Know Facts For Your Next Test
Net income is found on the income statement and indicates a company's profitability.
It is calculated by subtracting total expenses from total revenues.
Net income can be affected by non-operating items such as interest and taxes.
A positive net income signifies that a company is profitable, whereas a negative net income indicates a loss.
Net income plays a crucial role in determining retained earnings on the Statement of Owner’s Equity.