ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Net income before tax is the amount of profit made by a company before income tax is paid. This figure is found by subtracting total expenses from total revenue. Net income after tax is the amount of profit made by a company after income tax is paid.

Detailed explanation-3: -Net Income = Total Revenues – Total Expenses Net Income or Net profit is calculated so that investors can measure the amount by which the total revenue exceeds the company’s total expenses.

Detailed explanation-4: -Earnings after tax (EAT) is the measure of a company’s net profitability. It is calculated by subtracting all expenses and income taxes from the revenues the business has earned.