How is "income" defined in a business operation?

In a business operation, "income" is defined as the money or value received in exchange for providing goods or services. This definition highlights the fundamental nature of income as a flow of cash or equivalent resources that an organization generates through its core activities, such as selling products or offering services to customers. Understanding this definition is essential for grasping financial performance, as it distinguishes the operational revenue from other financial metrics.

The other options describe different aspects of financial performance: total expenses deducted from revenue indicates a process for calculating net income; the profit margin after costs are accounted for refers specifically to profitability rather than income; and funds accumulated over a financial year represent savings or retained earnings rather than immediate income. Therefore, focusing on income as the receipt from operations captures the essence of how businesses sustain themselves through financial transactions.