Net profit refers to:
A) the result of deducting liabilities from the assets of the firm.
B) the result of subtracting cost of good 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 refers to the final earnings that are left after all expenses, including taxes, have been deducted from the revenues. Option A refers to the calculation of net assets, not net profit. Option B refers to the calculation of gross profit. Option C refers to the calculation of operating profit.

Net Profit Refers To