Net Income Is Simply the Difference Between Revenue and Cost

question 332

True/False

Net income is simply the difference between revenue and cost of goods sold.

---

Definitions:

Risk-free Rate

The theoretical rate of return of an investment with zero risk of financial loss, typically represented by the yield on government securities.

Maturity

The time at which payment to a bondholder is due or the termination date of an investment contract.

Stock Price

The cost of purchasing a share of a company on the stock market at any given time.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to purchase an asset at a specified price within a designated time period.