Net income can be used to assess a company's progress in meeting the goal of profitability.

Question

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Net income, also known as profit or earnings, is a key financial measure that reflects a company's ability to generate revenue and control costs. It represents the amount of money that remains after subtracting all expenses from the total revenue. Thus, net income is a good indicator of a company's profitability and financial health. A positive net income indicates that the company is making a profit, while a negative net income means that the company is operating at a loss. Therefore, net income is an important metric for investors, analysts, and stakeholders to evaluate a company's performance and prospects.

Net Income Can Be Used to Assess a Company's Progress