GS IAS Logo

< Previous | Contents | Next >

NET INCOME

This is related to a limited liability firm/company (i.e., Ltd.). It is derived by deducting the expenses of the company from its total revenue in a particular period (usually one year). If income tax and interest are not deducted, it is called ‘operating profit’ (or ‘loss’, as the case may be). Net income is also called earnings, net earnings or net profit.