Define 'net income.'

Net income is defined as the total revenue minus total expenses, which reflects how much profit a company has generated over a specific period. This figure is critical for assessing a company's profitability and overall financial health. It encompasses not just the earnings from core operations, but also considers all the expenses, including operating costs, taxes, interest, and any other expenses incurred by the business. Thus, net income provides a comprehensive view of the company’s financial performance, allowing stakeholders to evaluate how effectively the company is managing its operations and expenses to generate profit.

Other definitions, while related to financial metrics, do not accurately capture the concept of net income. For instance, the calculation of all assets minus all liabilities would yield the company's equity, which represents ownership interest rather than profitability. Similarly, the total cash available for distribution relates to liquidity and cash flow, not profitability, and gross profit refers specifically to sales revenue minus the cost of goods sold, excluding other operational expenses. Therefore, the correct understanding of net income is essential for evaluating a company's financial success.