Definition: What is the Difference Between Gross and Net Income?
When talking about pay, wages, or income in general then gross and net income confused many people. the reason for the confusion is that many people mix these two terms.
Companies use these 2 terms to describe the financial ratio while people use these to describe their salaries.
What is Gross Income?
Amount of Revenues which exceed the cost of goods sold (COGS) is called Gross Income. Gross margin does not consider the selling and administrative expenses or Taxes.
What is Net Income?
Net Income measure the profits amount that remains in the business after the payment of all the expenses for a period.
Financial Ratio is a forum where you will learn about all ratios definitions and formulas.