The net income (NI) or net earnings an entity earns after deducting all monetary costs from total revenue. It reflects the amount of money that remains after subtracting the explicit costs of operations (operational costs). It is calculated as the result of all business core competencies:
Financial profit = sales – (cost of goods sold + selling, general and administrative expenses + operating expenses + depreciation + interest + taxes + other expenses)
Therefore, this measure of profit is also referred to as an accounting profit, a bookkeeping profit, and bottom line.
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