Net Income

In business, Net income also referred to as the bottom line, net profit, or net earnings is an entity's income minus expenses for an accounting period. It is computed as the residual of all revenues and gains over all expenses and losses for the period, and has also been defined as the net increase in stockholder's equity that results from a company's operations. In the context of the presentation of financial statements, the IFRS Foundation defines net income as synonymous with profit and loss.

Net income is a distinct accounting concept from profit. Profit is a term that "means different things to different people", and different line items in a financial statement may carry the term "profit", such as gross profit and profit before tax. In contrast, net income is a precisely defined term in accounting.