ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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net income
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taxable income
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Either A or B
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None of the above
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Detailed explanation-1: -Net salary is the total salary one gets after all the mandatory deductions such as taxes that are made from the total gross salary. This is the total amount that gets credited to the bank account of the employee after all the deductions are done.
Detailed explanation-2: -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.
Detailed explanation-3: -What is gross pay? As previously mentioned, gross pay is earned wages before payroll deductions. Employers use this figure when discussing compensation with employees, i.e. $60, 000 per year or $25 per hour. Gross pay is also usually referenced on federal and state income tax brackets.