Term For Income Minus Expenses

Profits income revenues expenses.

Term for income minus expenses. The generic term income is most commonly used to refer to net income instead of revenues. A positive number indicates that you make more than you spend and therefore are able to save money. In business and accounting net income also total comprehensive income net earnings net profit bottom line sales profit or credit sales is an entity s income minus cost of goods sold expenses depreciation and amortization interest and taxes for an accounting period. Investors should review the numbers used to calculate ni because expenses.

Calculate net income is revenues minus expenses. Earnings before income taxes and appreciation. We can see that operating income is the result of gross income or gross margin on apple s income statement of 20 2 billion minus operating expenses of 8 6 billion. Revenue is the total amount of income generated by the sale of goods or services while income is earnings or profit revenue minus expenses.

Depreciation expense is used to better reflect the expense and value of a long term asset as it relates to the revenue it generates. As you can see the net income definition is much different than the revenue definition of income. Net income equals the total company revenues minus total company expenses. Loss or gain this number is total income minus total expenses and indicates your loss or gain.

Than accrual accounting in the short term. Earnings per share are calculated using ni. Businesses are allowed to write off tax deductible expenses on their income tax returns to. It is computed as the residual of all revenues and gains over all expenses and losses for the period and has also.

Incidentally revenues is the money coming in income technically can be a little more nuanced a term at least in accounting and finance. Image by sabrina jiang. And amortization are non cash non cash expenses non cash expenses appear on an income statement because accounting principles require them to be recorded despite not actually being paid for with cash.