Income
Also called earnings, profit, or the bottom line (because it is usually the final line on the financial statement known as an Income Statement). Income is essentially what is left after all expenses and costs are subtracted from revenues.
Income is important to management in profit-making companies which, by definition have the maintenance or improvement of income as a primary goal (along with the goal of protecting and increasing owner’s equity). Note that a statement about income always refers to a specific time period (e.g.., for a specific fiscal year or quarter). From the equation you can see there are two ways to improve income: increase revenues, or decrease expenses and costs.
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