Question

Catherine sat down with all of her income details from the past year to calculate the total income she had in that period. After she created a consolidated income statement, she deducted some tax-exempt income details from the statement. What term would Catherine use for this final income calculation?
The final income that Catherine has calculated is called the
.

Answer 1

Answer:

The answer is: Net income.

Explanation:

Net income is a measure of the profitability of a company, or person. It is the income of an amount less the cost of goods sold, expenses, depreciation and amortization, interest and taxes for an accounting period.

For households and individuals, net income refers to gross income, less taxes and other deductions, for example, mandatory pension contributions. It is usually the basis for calculating how much income tax is owed.

The answer is: Net income.