What is the term for the income from investments or operations after all expenses are deducted?

The correct answer is net income, which represents the profit remaining after all expenses, including operating costs, interest, taxes, and any other expenses, have been subtracted from total revenue. This figure reflects the overall profitability of a business, providing a clear measure of its financial performance over a specific period.

Net income is essential for evaluating a company's financial health, as it shows how much money is available to shareholders or for reinvestment after covering all obligations. It is often used in financial analysis and decision-making, influencing everything from investment considerations to strategic business planning. Understanding net income helps individuals assess the efficiency of a company in managing its costs relative to its income-generating capabilities.

Revenue refers to the total income generated from business activities before any expenses are deducted, while gross profit focuses on the income remaining after subtracting the cost of goods sold, without considering other expenses. Operating income accounts for earnings before interest and taxes but does not encompass all expenses, such as unusual or non-operational costs, which are necessary to calculate net income accurately.