What does net income represent?

Net income represents the amount of money a company has left over after all expenses, taxes, and costs have been deducted from its total revenue. This figure is crucial because it provides a clear picture of a company's profitability over a specific period. By considering all expenses, including operating costs, interest, and taxes, net income reflects the company's true financial performance and is often referred to as the bottom line on an income statement. It serves as a vital metric for investors and stakeholders to understand how effectively the company is managing its resources and generating profit.

The other options do not convey the complete picture of profitability as net income does. For instance, total revenue before expenses does not account for any costs, while profit before taxes and interest excludes essential expenses that affect the bottom line. Similarly, revenue minus the cost of goods sold does not capture other operating costs and taxes, leading to an incomplete understanding of a company's financial health. Thus, understanding net income as revenue after all expenses, taxes, and costs provides a comprehensive view of overall profitability.