ECONOMICS
DECISION MAKING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Gross income and net income are the same.
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Net income is sometimes called “take home pay and Gross income is the total amount earned before deductions.
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Net income is the total amount earned before deductions.
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Neither is on your check.
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Detailed explanation-1: -Gross income is the total revenue derived from sales of goods and services in a specified period. Net income is the profit left after deducting total business expenses from gross income. Learn which business expenses you should track.
Detailed explanation-2: -Gross income includes your wages, dividends, capital gains, business income, retirement distributions as well as other income. Adjustments to Income include such items as Educator expenses, Student loan interest, Alimony payments or contributions to a retirement account.
Detailed explanation-3: -Net income refers to the amount an individual or business makes after deducting costs, allowances and taxes. In commerce, net income is what the business has left over after all expenses, including salary and wages, cost of goods or raw material and taxes.
Detailed explanation-4: -Typically, net income is synonymous with profit since it represents the final measure of profitability for a company. Net income is also referred to as net profit since it represents the net amount of profit remaining after all expenses and costs are subtracted from revenue.