Residual income is the difference between revenues and expenses.

Name: Residual income is the difference between revenues and expenses.
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

Residual income is the income earned after deducting all expenses, including the cost of equity or capital. It is a measure of profitability after accounting for the costs of generating profits. Therefore, it is not simply the difference between revenues and expenses.

Residual Income Is the Difference Between Revenues and Expenses