ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Very simply, disposable income is money you have after taking out/paying your taxes. Discretionary income is money left over after paying your taxes and other living expenses (rent, mortgage, food, heat, electric, clothing, etc.).

Detailed explanation-2: -Profit is simply total revenue minus total expenses. It tells you how much your business earned after costs.

Detailed explanation-3: -Retained earnings are the amount of profit a company has left over after paying all its direct costs, indirect costs, income taxes and its dividends to shareholders.

Detailed explanation-4: -Profit simply means revenue that remains after expenses, and corporate accountants calculate profit at a number of levels. For example, gross profit is revenue less a specific type of expense: the cost of goods sold (COGS).