Assertion: A company's net income is the amount of revenue it earns minus the cost of goods sold.
Reasoning: Net income is the profit that a company earns after deducting all of its expenses.

Both Assertion and Reasoning are true, but Reasoning is not the correct explanation of Assertion. Net income is the profit that a company earns after deducting all of its expenses, including the cost of goods sold. The Assertion correctly states that net income is calculated by subtracting the cost of goods sold from revenue, but the Reasoning does not explain why net income is equal to profit.