What is the difference between net income and profit ? What are the formulas? What is...

What is the difference between net income and profit ?
What are the formulas?

What is the difference between income and net income?

Expert Solution

Difference between Net income and profit-

Net Income is the Profit after payment of interest and tax.

Profit is the earnings before payment of interest and tax.

Formulas-

Profit = Gross Turnover- All expenses (incl non-operating)

Net Income = Profit- Interest - Tax

Difference between income and net income

Income is gross inflows to the entity before adjustment for expenses.

Net Income is gross inflow less expenses.

ekkarill92 answered 2 years ago

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