BUSINESS FINANCE I Dersi Introduction to Business Financial Management soru detayı:

PAYLAŞ:

SORU:

What do profit and net income of a company mean?


CEVAP:

Businesses (except non-profit-oriented organizations) arrange their operations in a way to create customer values, which are greater than the production value, so that there will be a generation of profit. Profit is, in simple terms, the difference between revenues and expenses. We can find profit information at the bottom line of income statement of a company, as “net income”. In accounting terms, net income is the net increase in the owners’ equity that results from a company’s operations.