What is the financial term for the remaining cash flow after expenses and taxes have been deducted?

Study for the NCEA Level 1 Business Studies Test. Engage with interactive questions, complete with hints and detailed explanations. Prepare effectively for your exam!

The remaining cash flow after all expenses and taxes have been deducted is referred to as Net Income. This term represents the profitability of a business, as it reflects the actual earnings available to shareholders and stakeholders once all obligations have been met.

Net Income is critical for assessing the overall financial health of a business, as it indicates how much profit is generated and available for reinvestment, distribution, or reserves after considering various costs, including operating expenses and taxation.

Other terms such as Gross Income refer to total revenue before any deductions, while Available Funds might imply cash that is easily accessible but does not specifically denote profitability after expenses. Free Cash Flow is also significant, as it measures the cash generated that can be used for expansion or paying dividends; however, it is calculated after accounting for capital expenditures, not just operational expenses and taxes.

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