What term refers to the bottom line of an income statement that indicates net profit or loss?

The term that refers to the bottom line of an income statement indicating net profit or loss is "Net Income." This figure represents the total earnings of a company after all expenses, taxes, and costs have been subtracted from total revenue. It is a crucial indicator of a company's profitability and is often used by investors to gauge the financial health of a business.

Net Income is derived from calculating revenues minus expenses, and it reflects the amount available for shareholders after all obligations have been met. This makes it the most comprehensive measure of a company's financial performance over a specific period.

In contrast, other terms like Operating Income and Gross Profit reflect different profitability levels. Operating Income accounts only for revenues and expenses associated with primary business activities, while Gross Profit is the difference between sales revenue and the cost of goods sold, not considering operational expenses or taxes. Retained Earnings represent the cumulative profits retained in the business rather than distributed as dividends, and it appears on the balance sheet rather than the income statement. Therefore, "Net Income" stands out as the definitive measure of profit or loss in an income statement.