ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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it is the amount of income after cost of goods are deducted
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it is also known as “pretax”
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It raises fees on interest rates
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it improves credit scores
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Detailed explanation-1: -Net income represents the overall profitability of a company after all expenses and costs have been deducted from total revenue. Net income also includes any other types of income that a company earned, such as interest income from investments or income received from the sale of an asset.
Detailed explanation-2: -Net income (NI) is calculated as revenues minus expenses, interest, and taxes.
Detailed explanation-3: -Net income refers to the money you may have available after taxes and deductions are taken out of your paycheck. For a business, net income is the money that’s left over after paying operating expenses, administrative costs, cost of goods sold, taxes, insurance and any other business expenses.
Detailed explanation-4: -Total Revenues – Total Expenses = Net Income Net income can be positive or negative. When your company has more revenues than expenses, you have a positive net income. If your total expenses are more than your revenues, you have a negative net income, also known as a net loss.
Detailed explanation-5: -Net Profit = Total Revenue-Total Expenses If $75, 000 is allocated for salaries, $25, 000 to operating expenses and $5, 000 to taxes, those numbers are then subtracted from the gross profit, leaving a net income of $195, 000.