Net income is the revenues of a company minus all expenses incurred in generating those revenues. On the income statement, net income is “the bottom line,” the last item after all intermediate measures of income – including gross, operating, and pretax income – are indicated. As an income statement item, net income is always measure...

Active income is a form of income for which labor services were performed, such as for self-employment or for another entity. This form of income includes wages, salaries, tips, fees, commissions, and any income from self-employment in which services were performed. The opposite of active income is passive income, in which no labor is performed (bu...

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