Net profit refers to
A) the result of deducting liabilities from the assets of the firm.
B) the result of subtracting cost of goods sold from revenues.
C) the result of deducting depreciation expense from revenues.
D) the net earnings after the deduction of all expenses, including tax expense.

Question

Quizplus · Accepted Answer

Net profit is the amount of income left after all expenses, including taxes, have been deducted from total revenue. It is the final and most important figure on a company's income statement, indicating how much profit the company has generated during a specific period of time. Therefore, the correct option is D.

Net Profit Refers to