It means what the company pays for an operational expense salary for the employee taxes on income interest etc. Selling expenses xxxx other expenses xxxx net.
Net earnings also called net income or profit is your gross business income minus business expenses.
Income minus expenses. Yes gross profit minus expenses equal to net income as proved by following. In short net income is total revenue minus total expense which can be written as where revenue. In business and accounting net income also total comprehensive income net earnings net profit bottom line sales profit or credit sales is an entity s income minus cost of goods sold expenses depreciation and amortization interest and taxes for an accounting period.
Minus off expenses from your income sources will give you your savings. No matter what kind of business you have you begin with gross income and deduct allowable expenses to get net income. Gross profit is the total revenue minus the expenses directly related to the production of goods for sale called the cost of goods sold.
It is the actual amount the company earned over a period of time. Things which rank close to food and shelter variable expenses luxuries travel plans gadgets etc. Gross income is the income received directly by an individual before any withholding deductions or taxes.
I would largely categorise expenses into two main buckets. To a business net income or net profit is the amount of revenues that exceed the total costs of producing those revenues. Operating profit 116 million minus all other fixed and variable expenses associated with operating the business.
Operating profit gross profit total operating expenses. The formula for net income is simply total revenue minus total expenses. Revenue is the total amount of income generated by the sale of goods or services while income is earnings or profit revenue minus expenses.
Fixed expenses utilities loan repayments insurance premiums food etc.