It is the end of December, and Juan, the owner of a small sporting goods business, is paying the last few expenses for the year. Once all the expenses are paid, the money that is left over will be Juan's profit and is also referred to as:
(1 point)
A. Net income
B. Variable income
C. Retention income
D. Division income
The correct answer is A. Net income. Net income refers to the money that remains after all expenses have been paid and is considered the profit for the business owner.
The correct answer is A. Net income. Net income is the amount of money remaining after deducting all expenses and taxes from the total revenue of a business. It represents the profit earned by the business during a specific period, in this case, the end of the year. To calculate net income, you would subtract all the expenses, including rent, salaries, utilities, and any other costs, from the total revenue generated by the business. The resulting amount is the net income or profit for that period.
