Net income is a business's profit after all expenses, the bottom line remaining once revenue is reduced by cost of sales, overhead, interest and tax.
Net income, the "bottom line", is what is left after every expense is subtracted from revenue. It is the final figure on the income statement and the measure most people mean by "profit". Retained in the business, it increases equity through retained earnings; distributed, it becomes dividends.
Accounting net income and taxable income are not the same. The T2 starts from accounting net income and then adjusts for differences, adding back non-deductible items like the 50% of meals, replacing book depreciation with CCA, and so on, to arrive at the income actually taxed.
A company earns $400,000 in revenue and incurs $360,000 in total expenses. Its net income is $40,000. After tax adjustments on the T2, its taxable income may differ from this accounting figure.
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