Difference Between Income From Continuing Operations And Net Income

Revenue refers to the sum of money which the company generates from doing the business in the normal course of operations from its customers whereas net income refers to the income earned by the company or the income left over in the company after deducting all the expenses of the period from the net revenue.

Difference between income from continuing operations and net income. Difference between operating income and net income. Net sales refer to revenue minus returned merchandise which is common for retailers. If revenues exceed expenses it is a net income and vice versa. This is a calculation of the profit generated by continuing operations during the period covered by the income statement.

Income from continuing operations comprise of. Revenue total net sales was 12 5 billion. Differences between revenue and net income. Income from continuing operations is a net income category found on the income statement that accounts for a company s regular business activities.

Operating income was 116 million and included all the expenses. The key difference between operating income and net income is that while operating income is the income caused by the conducting business operations net income is the profit left after considering all the expenditure incurred. Net income or net loss is equal to the sum of all revenues in the period minus the sum of all expenses in the period. Net income and net loss represent the change in the business s financial circumstances because of it running its revenue producing operations for the period.

The key difference between operating income and net income is that operating income refers to the income earned by a business organization during the period under consideration from its principal revenue generating activities and does not consider non operating income and non operating expenses whereas net income refers to earnings of the. Operating income is required to calculate operating margin which describes a company s operating efficiency. I after tax net income before discontinued operations. After all of the expenses are deducted the investor is left with a figure called net income from continuing operations.

Operating cash flow is the cash generated from operations or revenues less operating expenses. Net income is the result of revenues minus the expenses taxes and costs of goods sold cogs. Net income from continuing operations.