Question

The difference between revenues and expenses when revenue exceed expenses is termed.

• A. Net loss
• B. Net profit
• C. Gross loss
• D. Gross profit

Answer 1

The correct option is B Net profit

Profit & Loss having two sides i.e. Revenue and expense. All the revenues and incomes are recorded in the credit side and all the expense and losses are recorded in the debit side of the profit & loss account. Excess of income over expenditure is termed as Net Profit.