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What is the Meaning of Net income | Definition and What is Net income

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Meanings, definitions, concepts of daily use

The profit is the profit that derives or gets something. This concept is widely used in the context of the economy and finance to denote the gains from an asset or an investment (or investment).
In other words, if a person invests EUR 1,000 in buying clothes then resell them 1,500 euros, its benefit is 500 euros in total.
Net adjective, moreover, is said to refer to a quantity which has to undergo no withholding (insofar as it is precise and exempt from taxes).
Net income is therefore profit obtained once taxes paid, if applicable. It is the specific benefit that the person or the company collects.
See an example: a company made a monthly balance sheet and register income amounting to 100,000 Swiss francs. This money is truly up in the coffers of the company, but this does not mean that everything is gains. The company also has expenses that it must assume, namely, pay taxes, buy raw materials, etc. Net income is the amount that it will remain in the end, without spending and taxes. If the company has expenses of 60,000 Swiss francs, net income for the period was 40,000 Swiss francs (100,000 income minus spending 60,000).
We can understand that a company may be able to increase its earnings without the need to increase its revenues. To do this, it suffices to reduce its expenses.
Published for educational purposes

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