Net income is defined as

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Multiple Choice

Net income is defined as

Explanation:
Net income is the amount a business earns after subtracting its expenses from its revenues. In other words, it’s the positive difference when total revenue exceeds total expenses, calculated as total revenue minus total expenses. If expenses were higher than revenue, you’d have a net loss instead. The other choices don’t capture this idea: simply revenue ignores costs, expenses alone don’t reflect profitability, and the difference when expenses exceed revenue describes a net loss, not net income.

Net income is the amount a business earns after subtracting its expenses from its revenues. In other words, it’s the positive difference when total revenue exceeds total expenses, calculated as total revenue minus total expenses. If expenses were higher than revenue, you’d have a net loss instead. The other choices don’t capture this idea: simply revenue ignores costs, expenses alone don’t reflect profitability, and the difference when expenses exceed revenue describes a net loss, not net income.

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