Which of the following represents the basic formula for determining net income?

The basic formula for determining net income revolves around the relationship between revenue, expenses, and various types of income and losses. The correct formulation involves a comprehensive view that accounts for operating and non-operating elements in calculating net income.

The suggested correct answer presents a formula that clearly delineates how net income is influenced by both operating income and non-operating income, while also considering non-operating losses. This encapsulation aligns with standard accounting practices, which recognize that net income is ultimately derived from total revenue minus total expenses, adjusted for any extraordinary or non-operating items.

Operating income is generated from the core functions of a business, while non-operating income might come from investments or other ancillary activities. The subtraction of non-operating losses acknowledges that not all revenue streams are guaranteed and may impact the profitability reflected in the net income figure.

This comprehensive approach in the formula ensures that all relevant aspects of financial performance are properly accounted for, leading to an accurate representation of net income, which is essential for stakeholders analyzing a company's financial health.