Are net earnings and net income the same thing?

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Pineau 0 Comments

What is the difference between net earnings and net income? I suppose net income is the final figure I can see on the income statement. How is that different from the net earnings?

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score 0 · Answer 1 · 2021-03-15T15:21:00+00:00

Yes, they are the same thing. We would normally call the figure at the end of the income statement (profit and loss statement) the net profit/(loss). It is clearer to a reader as to what we are then referring to; ie, did the entity make a profit or loss in the reporting period. Net earnings or net income can lead to some confusion in that some people use the term to refer to the netting off of income – which of course should not normally be done.

score 0 · Answer 2 · 2012-12-02T15:41:57+00:00

In accounting terms, they are the same thing. Net earnings and the net income is the income minus all expenses incurred (including taxes). The net income also refers to the personal income available to us after taxes are deducted (gross income minus taxes).