What Is Net Income? - Definition & Formula


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What's the best explanation of net income?

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1. Which financial document is net income always reported on?

2. Which one of the following is the formula for calculating net income?

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About This Quiz & Worksheet

This quiz and worksheet combo helps you review your knowledge of net income and net loss. In order to pass the quiz, you will need to know what net income is and how it is calculated.

Quiz & Worksheet Goals

Use this worksheet and quiz to assess your knowledge of:

  • Definition of net income
  • How to calculate net income
  • The format of an income sheet
  • Purpose of calculating net income

Skills Practiced

  • Making connections - use your understanding of the concept on net income
  • Information recall - access the knowledge you have gained regarding ways net income is calculated
  • Knowledge application - use your knowledge to answer questions about the definition of net income

Additional Learning

To learn more about net income, review the corresponding lesson on What Is Net Income? - Definition & Formula. This lesson covers the following objectives:

  • Define net income
  • Compare and contrast net income and net loss
  • Understand how net income is calculated
  • Review the format of an income sheet