Assuming a company uses the accrual basis of accounting, what is net income?

-gross sales net of sales reurns and allowances and sales discounts.

-the difference between a company's sales and its cost of goods sold.

-the portion of earnings retained in the company rather than being paid to shareholders as dividends.

-the difference between the amount of cash collected during the year and the amount of cash paid out during the year.

-the difference between the revenues earned and the expenses incurred during the accounting period.