What Is Income Minus Expenses

Net income ni also called net earnings is calculated as sales minus cost of goods sold selling general and administrative expenses operating expenses depreciation interest taxes and.

What is income minus expenses. For example if a store had 100 000 in sales but their expenses for rent employees supplies etc is 60 000 then they had a net income of. Solution by examveda team net income equal to revenues minus expenses. The income statement is one of a company s core financial statements that shows their profit and loss over a period of time. Gross profit is the total revenue minus the expenses directly related to the production of goods for sale called the cost of goods sold.

The income statement is one of three statements. Derived from gross profit operating profit reflects the. Revenue minus trading expenses gross income and revenue minus total expenses net income upvote 3 downvote 0 reply 0. Revenue is the income generated before any expenses are taken out.

Net income is your revenues minus your expenses. Revenue less expenses would equal profit if the number is positive loss if the number is negative. If it is total revenue less expenses then it is net profit loss. As you can see the net income definition is much different than the revenue definition of income.

If it is revenue less cost of goods sold it would be gross profit loss. Net income equals the total company revenues minus total company expenses. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities. For one level down.

Therefore when a company is said to have top line growth the company s revenue is growing.