What is a firm's 'net income'?
A)a measure of the firm's profitability over a given period
B)the difference between the sales and other income generated by the firm, and all costs, taxes, and expenses incurred by the firm in a given period
C)the last or 'bottom' line of the income statement
D)all of the above

Question

Quizplus · Accepted Answer

Net income is the profit generated by a firm over a given period, which is calculated as the difference between the revenue generated by the firm and all costs, taxes, and expenses incurred by the firm during that period. It is considered the last or 'bottom' line of the income statement as it represents the final amount of profit that the firm has earned after accounting for all of its expenses. Therefore, all of the answer choices are correct.

What Is a Firm's 'Net Income