Editing Net income (section)

{{Short description|Measure of the profitability of a business venture}}
{{Redirect|Bottom line}}
{{Accounting}}
In [[business]] and [[Accountancy|accounting]], '''net income''' (also '''total comprehensive income''', '''net earnings''', '''net profit''', '''bottom line''', '''sales profit''', or '''credit sales''') is an entity's [[income]] minus [[cost of goods sold]], expenses, [[depreciation]] and [[Amortization (accounting)|amortization]], [[interest]], and taxes, and other expenses for an [[accounting period]].<ref name="ias1">{{cite web |publisher=IFRS Foundation |year=2012 |title= IAS 1 Presentation of Financial Statements |access-date= April 14, 2012 |url=http://eifrs.ifrs.org/eifrs/bnstandards/en/2012/ias1.pdf }}</ref>{{Better source needed|reason=The current source does not obviously contain a definition.|date=August 2024}}

It is computed as the residual of all revenues and gains less all expenses and losses for the period,<ref name="swsf">Weil, Schipper, Francis. (2009) Financial Accounting: An Introduction to Concepts, Methods, and Uses. Cengage Learning</ref> and has also been defined as the net increase in [[Equity (finance)|shareholders' equity]] that results from a company's operations.<ref name="nnp">Weil, Schipper, Francis. (2010) Financial Accounting. Cengage Learning.</ref> It is different from [[gross income]], which only deducts the cost of goods sold from revenue.

For [[Household|households]] and individuals, '''net income''' refers to the (gross) income minus taxes and other deductions (e.g. mandatory [[pension]] contributions).