Which term refers to the net result after subtracting expenses from revenues?

Which term refers to the net result after subtracting expenses from revenues?

• A. Revenue
• B. Net Income
• C. Profit Margin
• D. Bottom Line

Answer: (D)

The final profitability figure is the net income, the amount left after subtracting expenses from revenues. In everyday business language, that same number is called the bottom line. So the bottom line is the best answer here because it specifically refers to the net result after all costs are deducted. Revenue represents the total income before expenses, and Profit Margin is a ratio (net income divided by revenue), not the actual net amount. The bottom line emphasizes the true profitability after all expenses.

The final profitability figure is the net income, the amount left after subtracting expenses from revenues. In everyday business language, that same number is called the bottom line. So the bottom line is the best answer here because it specifically refers to the net result after all costs are deducted. Revenue represents the total income before expenses, and Profit Margin is a ratio (net income divided by revenue), not the actual net amount. The bottom line emphasizes the true profitability after all expenses.