Net Income
About Net Income:
In general. The sum remaining after all expenses have been met or deducted; synonymous with net earnings and with net profit or net loss (depending on whether the figure is positive or negative). Net income is gross income less deductible income-related expenses. Many countries levy income tax on this basis. Business. The difference between total sales and total costs and expenses. Total costs comprise cost of goods sold, including depreciation; total expenses comprise selling, general, and administrative expenses, plus income deductions. Net income after taxes is the bottom line.
Tax. See gross income; taxable income.
To qualify for a foreign tax credit, a tax paid to a foreign country must satisfy the net income test.
See the entries Income Tax and State Income Tax in the American Encyclopedia of Law.
See Depreciation in the United States Encyclopedia of Law and Depreciation in the World Encyclopedia of Law.
Description and Definition of Net Income
The difference between a businesses total revenues and its total expenses is its net income. This amount is usually found at the bottom of a company's Profit and Loss statement. Corporate dividends are paid from net income.
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