Net income is:
A)equal to cash flow
B)profits remaining after income taxes are paid
C)unavailable to the owners of the business
D)none of the above

Question

Quizplus · Accepted Answer

Net income is the profit made by a company after deducting all expenses including income taxes. It is not equal to cash flow as cash flow measures the flow of cash in and out of a company, whereas net income is a measure of profitability. Net income is available to the owners of the business, but it may be retained within the company for reinvestment or distributed as dividends.

Net Income Is