Question

Barat owns a large chain of Indian markets. A significant part of his job is determining the amount of income left after taxes and whether the company will retain this income or pay it out in dividends to its stockholders. The income in this scenario is ________ income.

Answer 1

Answer:

Net Income.

Explanation:

Net income is also known as Net Earnings or Net Profit. It is the total amount a person receives after the deduction of taxes or other expenses. Net Income is calculated by subtracting expenses such as taxes, investment incomes, etc.

Net Income is also known as 'Bottom Line' income as it is written at the bottom after subtracting all the expenses, taxes, etc from the total income.

In the given case, Barat's income is net income as the income he received is given by deducting the dividend and taxes. Thus the correct answer is net income.