On the Income Statement, what is the final line?

On the Income Statement, what is the final line?

• A. Operating Income
• B. Gross Profit
• C. Net Income
• D. Earnings Before Interest and Taxes

Answer: (C)

Net income is the bottom line of the income statement. It shows the company’s profit for the period after subtracting every cost and expense, including cost of goods sold, operating expenses, depreciation and amortization, interest expense, and taxes, plus any other non-operating items. Because it accounts for all deductions, it is the final figure reported and can be positive or negative. Other lines like gross profit show profitability before operating expenses, and operating income (EBIT) reflects earnings from core operations before interest and taxes. These are intermediate steps, not the final measure of profitability.

Net income is the bottom line of the income statement. It shows the company’s profit for the period after subtracting every cost and expense, including cost of goods sold, operating expenses, depreciation and amortization, interest expense, and taxes, plus any other non-operating items. Because it accounts for all deductions, it is the final figure reported and can be positive or negative.

Other lines like gross profit show profitability before operating expenses, and operating income (EBIT) reflects earnings from core operations before interest and taxes. These are intermediate steps, not the final measure of profitability.