ECONOMICS
BUDGETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
True
|
|
|
False
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -Net income refers to the amount an individual or business makes after deducting costs, allowances and taxes.
Detailed explanation-2: -Typically, gross income defines the total earnings of a business entity before expenses like taxes and deductions are accounted for. On the other hand, net income is the earnings one generates after expenses like taxes and deductions have been subtracted from total income.
Detailed explanation-3: -Gross pay is what employees earn before taxes, benefits and other payroll deductions are withheld from their wages. The amount remaining after all withholdings are accounted for is net pay or take-home pay.
Detailed explanation-4: -Although net income after taxes is essentially the same as net income, it is used in financial statements to differentiate between income before taxes and income after taxes. The two figures can also be described as pre-tax income and after-tax income.