Question
The Income calculated by taking revenues and
subtracting the costs of doing business such as depreciation, interest, taxes and other expenses is known as:Solution
Net income (NI) is a company's total earnings (or profit); net income is calculated by taking revenues and subtracting the costs of doing business such as depreciation, interest, taxes and other expenses. This number appears on a company's income statement and is an important measure of how profitable the company is over a period of time. Net income also refers to an individual's income after taking taxes and deductions into account. Operating Profit is a profit from business operations (gross profit minus operating expenses) before deduction of interest and taxes. Total revenue in economics refers to the total receipts from sales of a given quantity of goods or services. It is the total income of a business and is calculated by multiplying the quantity of goods sold by the price of the goods.
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