The Net Profit Figure Is Often Referred to as the 'Bottom

question 42

True/False

The net profit figure is often referred to as the 'bottom line' and is the residual of income after deducting expenses for the period.

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Definitions:

Receive Payments

The process of collecting money from customers against invoices for goods or services provided.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been delivered but not yet paid for.

Enter Bills Window

A feature in accounting software where users can input and manage bills they need to pay to suppliers or service providers.

Checking Account

A bank account from which payments can be ordered by the account holder, typically used for day-to-day financial transactions.