Which term is the money left after subtracting all expenses, i.e., net income?

Which term is the money left after subtracting all expenses, i.e., net income?

• A. Profit
• B. Funds
• C. Earnings (Profit/Bottom Line)
• D. Total Sales (Revenue)

Answer: (C)

Net income is the money left after subtracting all expenses from revenue. This amount is commonly called earnings and is also known as the bottom line, because it’s the final line on the income statement. It reflects profitability after accounting for every cost—operating expenses, interest, taxes, and any other deductions. Why this fits best: it captures the full residual income after all costs, not just inflows or a partial profit. Revenue (or total sales) is the top line and doesn’t account for expenses, so it isn’t net income. Funds is too vague for financial reporting. Profit can be used in various senses (gross, operating, net), but earnings is the standard term for net income in financial statements, aligning with the idea of the bottom line.

Net income is the money left after subtracting all expenses from revenue. This amount is commonly called earnings and is also known as the bottom line, because it’s the final line on the income statement. It reflects profitability after accounting for every cost—operating expenses, interest, taxes, and any other deductions.

Why this fits best: it captures the full residual income after all costs, not just inflows or a partial profit. Revenue (or total sales) is the top line and doesn’t account for expenses, so it isn’t net income. Funds is too vague for financial reporting. Profit can be used in various senses (gross, operating, net), but earnings is the standard term for net income in financial statements, aligning with the idea of the bottom line.