Series 79 practice questioneasyIncome Statement Basics
An investment banker is reviewing a company's income statement. Which line item represents the company's profit after all expenses, including taxes and interest, have been deducted from total revenues?
- AGross Profit
- BOperating Income
- CNet Income✓ Correct answer
- DEBITDA
Explanation
Why C — Net Income
Net income is the final profit figure after all expenses, taxes, and interest have been deducted. Gross profit and operating income do not account for interest and taxes, while EBITDA excludes interest, taxes, depreciation, and amortization.
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