Which of the following terms refers to the difference calculated by subtracting income taxes from the operating income of an organization?
A) Gross revenue
B) Net income
C) Gross profit
D) Cash flow
E) Leverage

Question

Quizplus · Accepted Answer

Net income is calculated by subtracting income taxes from the operating income of an organization. Gross revenue refers to the total revenue earned by the organization before any deductions, while gross profit refers to the revenue earned minus the cost of goods sold. Cash flow and leverage are not directly related to income tax calculations.

Which of the Following Terms Refers to the Difference Calculated