What Is Net Income? The Motley Fool

Next to revenue, net income is the most important number in accounting. All the expenses are mentioned in the middle, followed by the total revenue. When total revenue is higher than total expenses, this indicates a good net income and is referred to as profitability. On the other hand, the company incurs a loss if its expenses exceed its revenue. For businesses, net income can usually be found on the bottom line of a company’s…