Net income can best be described as:

Question

Quizplus · Accepted Answer

Net income is the amount of profit earned by a company after deducting all expenses from its revenues. It is a measure of a company's profitability over a specific period of time, usually a year. Therefore, option B - "Revenues minus expenses" is the correct answer.

Option A is incorrect because net income includes non-cash items such as depreciation and amortization and does not reflect the actual cash received by the company.

Option C is not entirely accurate because net income may not necessarily be retained by the company. It can be distributed to shareholders in the form of dividends or used to pay off debts.

Option D is not related to net income, as it refers to the assets owned by a company, regardless of whether or not they generate income.

Net Income Can Best Be Described As