Net Profit Refers To

question 212

Multiple Choice

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.

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Definitions:

Balance Sheet

The balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and shareholders' equity.

Inventory

The cumulative inventory of materials and products that a business maintains for the goal of selling or using in production.

Falling Prices

A situation where the general level of prices for goods and services is declining.

LIFO Method

A method of inventory valuation based on the assumption that the most recently acquired items are the first to be sold.