Dear Sir / Madam
What is the difference between Net Income and Residual Income ! Or both are one and same !
Deepak
Ask the Tutor ACCA APM
Net Income and Residual Income
Net income = income after all expenses. It would depend on the context/definition whether that was after or before interest. Eg net operating income is before interest.
Residual income = divisional net operating income less a notional interest charge for the division's use of group capital.
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