Changes

'''Net income''' is equal to the [[income]] that a firm has after subtracting costs and [[expense]]s from the total [[revenue]]. Expenses will typically include [[tax expense]]. For a [[merchandising]] [[company]], subtracted costs may be the cost of goods sold, sales discounts, and sales returns and allowances.  For a product company [[advertising]], [[manufacturing]], and design and development costs are included.

'''Net income''' is equal to the [[income]] that a firm has after subtracting costs and [[expense]]s from the total [[revenue]]. Expenses will typically include [[tax]] expense. For a [[Merchandise|merchandising]] [[company]], subtracted costs may be the cost of goods sold, sales discounts, and sales returns and allowances.  For a product company [[advertising]], [[manufacturing]], and design and development costs are included.

Net income is sometimes called the '''bottom line''' because it is typically found on the last line of a company's [[income statement]].

Net income is sometimes called the '''bottom line''' because it is typically found on the last line of a company's [[income statement]].

Another term that is closely related to this is top line. As the Total Revenue forms the first line of the account statement, it is often called top line.

Another term that is closely related to this is top line. As the Total Revenue forms the first line of the account statement, it is often called top line.