Definition: Income remaining after the deductions specified by the accounting or investment context. A business's net income is commonly its profit after applicable expenses.
Example
A business reports revenues of $100,000 and $82,000 in recognized expenses, leaving $18,000 net income.
Keep the distinction clear
In real estate valuation, NOI is a specifically defined operating measure. Do not assume accounting net income, NOI, cash flow, and taxable income are interchangeable.
Related terms
Net Operating Income (NOI) · Income Statement · Before-Tax Cash Flow
Keep studying
Income Approach: NOI, Cap Rate, Property Value, and Cash-on-Cash Return
References: FREC Course II syllabus: investment concepts
Pronunciation (US): NET IN-kum (capitals show stress)
Pronunciation reference: Merriam-Webster
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