Which of the following statements best describes the difference between net income and gross profit? a. gross profit considers operating expenses while net income does not. b. net income considers operating expenses while gross profit does not. c. gross profit deducts taxes while net income does not. d. net income deducts taxes while gross profit does not.

The correct answer is the option b: b. Net income considers operating expenses while gross profit does not.

 By definition, Net income is the amount of total revenues that exceed total expenses. The formula for calculate the net income is shown below:
  Net income=total revenues-total expenses

 And the formula for calculate the Gross profit is:
 Gross profit=total revenue-cost of goods sold