Question

What is the formula for net income?

Answer 1

The net income formula is calculated by subtracting total expenses from total revenues. Many different textbooks break the expenses down into subcategories like cost of goods sold, operating expenses, interest, and taxes, but it doesn't matter. All revenues and all expenses are used in this formula.

Answer 2

The net income formula is calculated by subtracting total expenses from total revenues. Many differenttextbooks break the expenses down into subcategories like cost of goods sold, operating expenses, interest, and taxes, but it doesn't matter. All revenues and all expenses are used in this formula.