Income
Definition
Income is another word for revenue or profit, depending on context. Net income means profit (revenue minus expenses). In everyday bookkeeping, income often means revenue.
Example
A business earns $10,000 in revenue and has $7,000 in expenses. Net income (profit) is $3,000. Some people also call the $10,000 'income.'
Why It Matters
Clarifying whether 'income' means revenue or profit avoids confusion. In financial statements, net income always means profit.