How is net income defined?

Net income is defined as the total profit after all expenses have been deducted. This includes not just the operating expenses, but also taxes, interest, depreciation, and any other expenses that the company incurs throughout its business operations. It represents the amount of earnings available to shareholders, often referred to as the bottom line, because it is found at the bottom of the income statement.

In contrast, the other definitions provided refer to different concepts in financial accounting. The total profit before taking into account taxes and interest, operating costs alone, or gross profit all represent earlier stages in the income calculation process. Each of these figures is important in their own right, but they do not capture the complete picture of profitability that net income conveys. Therefore, the definition that encompasses all expenses leading to the final profit figure is the accurate representation of net income.