Distinguish between operating income and net income ?

Distinguish between operating income and net income ?



Operating income is total revenues from operations for the accounting period minus cost of goods sold and operating costs (excluding income taxes):

Operating income = Total revenues from operations - Costs of goods sold and operating costs (excluding income taxes)

Net income is operating income plus nonoperating revenues (such as interest revenue) minus non operating costs (such as interest cost) minus income taxes.

Net income = Operating income - Income taxes


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