For personal income net of taxes, see disposable income.
"Bottom line" redirects here. For other uses, see Bottom line (disambiguation).
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Net income in accounting is an entity's income minus expenses for an accounting period.[1] It is computed as the residual of all revenues and gains over all expenses and losses for the period,[2] and has also been defined as the net increase in stockholder's equity that results from a company's operations.[3] In the context of the presentation of financial statements, the IFRS Foundation defines net income as synonymous with profit and loss.[1]

Net income is a distinct accounting concept from profit. Profit is a term that "means different things to different people"[3], and different line items in a financial statement may carry the term "profit", such as gross profit and profit before tax.[1] In contrast, net income is a precisely defined term in accounting.[3]

Contents

Overview [link]

Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings. As profit and earnings are used synonymously for income (also depending on UK and US usage), net earnings and net profit are commonly found as synonyms for net income. Often, the term income is substituted for net income, yet this is not preferred due to the possible ambiguity. Net income is informally called the bottom line because it is typically found on the last line of a company's income statement (a related term is top line, meaning revenue, which forms the first line of the account statement).

The items deducted will typically include tax expense, financing expense (interest expense), and minority interest. Likewise, preferred stock dividends will be subtracted too, though they are not an 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.

An equation for net income [link]

Net sales (revenue)
– Cost of goods sold
= Gross profit
– SG&A expenses (combined costs of operating the company)
= EBITDA
– Depreciation & amortization
= EBIT
– Interest expense (cost of borrowing money)
= EBT
– Tax expense
= Net income (EAT)

References [link]

  1. ^ a b c IFRS Foundation. (2012) IAS 1 Presentation of Financial Statements. Retrieved on April 14, 2012 from https://eifrs.ifrs.org/eifrs/bnstandards/en/2012/ias1.pdf
  2. ^ Stickney, et al. (2009) Financial Accounting: An Introduction to Concepts, Methods, and Uses. Cengage Learning.
  3. ^ a b c Needles, et al. (2010) Financial Accounting. Cengage Learning.

See also [link]

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Bottom line (disambiguation)

Bottom line may refer to:

  • Bottom line mentality
  • The Bottom Line, a student-run print and online newspaper at the University of California, Santa Barbara
  • ESPN BottomLine, the trademark for a lower-third sports information ticker graphic
  • The bottom line, or net income, the income that a firm has after subtracting costs and expenses from the total revenue
  • The catchphrase of wrestler Stone Cold Steve Austin
    • WWE Bottom Line, a World Wrestling Entertainment syndicated television show whose name came from the aforementioned catchphrase
  • WWE Bottom Line, a World Wrestling Entertainment syndicated television show whose name came from the aforementioned catchphrase
  • Bottom Line Publications, a branch of Boardroom, Inc., publishers of certain newsletters
  • The Bottom Line (radio programme), a business discussion program on BBC Radio 4
  • The Bottom Line (television series), an Australian leadership discussion television programme on Channel Nine
  • The Bottom Line, an American cable television program
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    The Bottom Line (venue)

    Coordinates: 40°43′44″N 73°59′43″W / 40.729007°N 73.995162°W / 40.729007; -73.995162

    The Bottom Line was a music venue at 15 West 4th Street between Mercer Street and Greene Street in the Greenwich Village neighborhood of Manhattan, New York City. During the 1970s and 1980s the club was a major space for small-scale popular music performances.

    History

    Owned by Allan Pepper and Stanley Snadowsky, the Bottom Line opened on February 12, 1974 and enjoyed a successful three-decade run, presenting major musical acts and premiering new talent. Bruce Springsteen played showcase gigs at the club and Lou Reed recorded the album Live: Take No Prisoners there. Harry Chapin held his 2000th concert at the Bottom Line in January 1981.

    The Bottom Line hosted an extremely wide variety of music and musicians. Among the thousands who performed on its stage were Eric Clapton, Carl Perkins, Linda Ronstadt, The Police, Richard Marx, Prince, Daryl Hall & John Oates, Van Morrison, The Stone Poneys, Chuck Mangione, Emmylou Harris, Clinn Rippy, Neil Young, Barry Manilow, Laura Nyro, Loudon Wainwright III, New York Dolls, Lyle Lovett, The Electric Flag, Pat Martino, Todd Rundgren, Graham Parker, Grayson Hugh, Stan Ridgway, Horslips, Dire Straits, Chris Hillman, Hawkwind, Dolly Parton, George Jones, Tracy Nelson, The Pointer Sisters, Betty Carter, Ravi Shankar, Ramones, Miles Davis, Gato Barbieri, Bill Evans, Charles Mingus, Mose Allison, Muddy Waters, Mike Bloomfield, Paul Butterfield, Ray Barretto, Peter Gabriel, Al Kooper, Tom Waits, Melvin Van Peebles, Neil Sedaka, Billy Joel, Suzi Quatro, Patti Smith, Flo & Eddie, Toots and the Maytals, Cheech & Chong, Tower of Power, Tim Hardin, Roger McGuinn, JJ Cale, The Meters, Greg Kihn Band, Ry Cooder, Southside Johnny & The Asbury Jukes, Sam & Dave, Asım Can Gündüz, The Ronettes, John Cale, Gong, Peter Bardens, The Violent Femmes and Michael Hedges.

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    Bottom Line (album)

    Bottom Line is a recording by British bluesman John Mayall with various musicians. Along with No More Interviews it is one of only two Mayall albums that has never been released on CD.

    Track listing

  • "Bottom Line" (*1)
  • "Dreamboat" (*2)
  • "Desert Flower" (*1)
  • "I'm Gonna Do It" (*1)
  • "Revival" (*2)
  • "The Game Of Love" (*2)
  • "Celebration" (*3)
  • "Come With Me" (*3)

    • Personnel

  • (1): John Mayall-vocals, harmonica. Leon Pendarvis-keyboards. Bob Babbitt-bass. Frankie Centano-bass. Jeffrey Miranov-guitar. Sid McGinnis-guitar. John Tropea-guitar. Steve Jordan-drums. Errol Bennett-percusion. Aurthur Jenkins-percussion. Rob Mounsey-keyboards. John Faddis-trumpet. Virgil Jones-trumpet. George Young-alto sax, "C" flute. Allan Ralph-Bass trombone. Howard Johnson-baritone sax, Vivian Cherry, Ullanda McCullough, Janice Gadson Pendarvis- backup vocals.
  • (2): John Mayall-Vocals, harmonica. Gordon Edwards-bass. Cornell Dupree-guitar. Jeff Layton-guitar. Paul Shaffer-keyboards. Rubens Bassini-percussion. Michael Brecker-tenor sax. Ron Cuber-baritone sax. Randy Brecker-trumpet. Lew Soloff-trumpet. Vivian Cherry, Ullanda McCullough, Janice Gadson Pendarvis- backup vocals.
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    PLAYLIST TIME:

    Thirty Seconds

    by: Bottom Line

    Thirty seconds, because I can't take another minute.
    Probably a call you'll want to take.
    This time I'm asking you to stay.
    You won't get far when I'm the villain here.
    So think, if it's all up to me
    Suppose we don't get out alive, (and ahh you know)
    You taught me to think twice.
    Seconds, because if I spend another minute,
    One final hit below the waist.
    Conceived, but misdirected,
    Don't ask me, I won't bring it home,
    I'll just throw away the key.
    So when, it's all up to you
    Nothing ever goes my way, (and ahh you know)
    You taught me to be brave.
    What keeps me here?
    I'll never know (is always wrong).
    These cruel intentions have lingered on
    Seconds, a minute no, an hour
    Makes another day you taught me to think twice.
    Oh yeah, stand out
    Beneath the crowd,
    Rebel and re-tell,
    Relieved of trivial charade,
    Don't break
    My own pretend mistakes.




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