ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the total amount of money you earn
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the amount of money you receive after deductions are subtracted from your gross income
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the amount of money that is taken away in the form of taxes
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the hourly rate of pay
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Detailed explanation-1: -What is Net Income? Net income is the amount of accounting profit a company has left over after paying off all its expenses. Net income is found by taking sales revenue and subtracting COGS, SG&A, depreciation, and amortization, interest expense, taxes and any other expenses.
Detailed explanation-2: -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-3: -A deduction is an expense that can be subtracted from a taxpayer’s gross income in order to reduce the amount of income that is subject to taxation.
Detailed explanation-4: -Net income is calculated by subtracting the cost of sales, operational expenses, depreciation, interest, amortization, and taxes from total revenue. Also called accounting profit, net income is included in the income statement along with all revenues and expenses.
Detailed explanation-5: -Net income (NI) is calculated as revenues minus expenses, interest, and taxes. Earnings per share are calculated using NI. Investors should review the numbers used to calculate NI because expenses can be hidden in accounting methods, or revenues can be inflated.