Perhaps the most humiliating portion of the treaty for the defeated Germany was Article 231, commonly known as the War Guilt Clause, which forced Germany to accept complete responsibility for initiating World War I.
For a company, net income is the residual amount of earnings after all expenses have been deducted from sales. In short, gross income is an intermediate earnings figure before all expenses are included, and net income is the final amount of profit or loss after all expenses are included. For example, a business has sales of $1,000,000, cost of goods sold of $600,000, and selling expenses of $250,000.
When calculating your income for tax purposes, you may hear the terms gross and net. Gross income includes (almost) all of your income, while net income is the end result after various tax deductions are applied. Here's what these terms mean, as well as another important income figure to know. Gross income. In a financial context, the term gross generally means all of something. For example, on your paycheck, gross pay refers to the entire amount of money you get paid, before taxes and other deductions come out.