What Is Income Minus Expenses Called

The income statement is one of a company s core financial statements that shows their profit and loss over a period of time.

What is income minus expenses called. Net income is completely different than gross income. Another meaning of income refers to net income. Disposable income in other words is a person s take home pay used to meet both essential and. Net income equals the total company revenues minus total company expenses.

Income minus expenditure is called income approach. Discretionary income is derived from disposable income which equals gross income minus taxes. Derived from gross profit operating profit reflects the. Gross income is basically revenues and gains minus expenses and losses.

As you can see the net. Gross profit is the total revenue minus the expenses directly related to the production of goods for sale called the cost of goods sold. Net income is gross income minus taxes. Operating income also called income from operations takes a company s gross income which is equivalent to total revenue minus cogs and subtracts all operating expenses a business s operating.

Net income ni also called net earnings is calculated as sales minus cost of goods sold selling general and administrative expenses operating expenses depreciation interest taxes and. Profit is directly related to products and services. Revenue is the total amount of income generated by the sale of goods or services while income is earnings or profit revenue minus expenses. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this statement is one of three statements used in both corporate finance including financial modeling and accounting.

Loss or gain this number is total income minus total expenses and indicates your loss or gain.