What is defined as the difference between total revenue and total expenses when the total revenue is greater?

The term defined as the difference between total revenue and total expenses, specifically when total revenue exceeds total expenses, is net income. Net income represents the profit made by a business or organization after all costs and expenses, including taxes and interest, have been subtracted from total revenues. This figure is crucial for assessing the overall financial health and performance of a business, as it indicates how much profit a company retains after covering all necessary expenditures.

In contrast, other terms listed serve different purposes in financial accounting. Net loss refers to the scenario where total expenses surpass total revenues, while gross profit specifically focuses on revenue from sales minus the cost of goods sold, not accounting for other expenses. Operating profit narrows down net income further by considering only operating revenues and expenses, excluding non-operating income and expenses like investments. Each term has its specific context within financial statements, but for the scenario described—where revenue is greater than expenses—net income is the correct and appropriate term.