Net income
Net income (alternatively known as net profit; hereinafter, the Result) is the financial result of operations when revenue totals more than expenses. The Result can also be calculated while taking expenses away from the gross profit (or loss).
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Net income. The financial result of operations when revenue totals more than expenses.
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Net income. Operating income plus nonoperating revenues (such as interest revenue) minus nonoperating costs (such as interest cost) minus income taxes.
Related concepts
- Bookkeeping. Recording, filing, and retrieving of financial data, as well as producing those financial reports that are required by laws.
