Question

Gross Profit Less Expenses Is Known as:

• A. Drawings
• B. Net profit
• C. Net Turnover
• D. Cost of goods sold

Answer 1

The correct option is B

Net profit

Answer:

1. Net profit

Gross profit – Operating expenses = Net Profit

Net profit represents the true value of the profitability of the business or the actual profit that is obtained after deducting all the taxes and costs.

Also read:

• Net Profit Ratio
• Operating Profit Ratio

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