Which term best describes the earnings subtracted for taxes and other deductions?

The term that best describes the earnings subtracted for taxes and other deductions is net income. This figure reflects the actual profit of a business or individual after all expenses, including taxes, have been deducted from total income. It represents the amount available for reinvestment, distribution to shareholders, or personal use.

Net income is important because it provides a clear picture of financial performance, allowing stakeholders to understand how much money is truly made after accounting for all necessary deductions. It differs significantly from gross income, which represents total earnings before any deductions are applied. Taxable income pertains to the portion of income that is subject to taxation, while disposable income usually refers to personal income after taxes that can be spent or saved. These distinctions highlight why net income is the most accurate term for earnings after deductions.