Which financial measure represents the result after subtracting all expenses and taxes from total revenue?

• A. Net Profit
• B. Net Worth
• C. Opportunity Cost
• D. Net Income/Loss

Answer: (D)

Subtracting all expenses and taxes from total revenue gives the bottom line: net income. This is the actual profit (or loss) the business retains after paying every cost, including operating expenses and taxes. Net income is the financial result shown on the income statement and is also called net profit in many contexts. It reflects how much the company earned in that period after all obligations are met. Net worth, by contrast, is the value of assets minus liabilities at a moment in time, not the profitability of a period. Opportunity cost is the foregone benefit of the next-best alternative, not a financial result of the business’s revenue and expenses. So the measure described is net income.