Net Profit Refers To

question 14

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:

Cost Reconciliation Report

A financial report used in manufacturing to reconcile the costs involved in the production process.

Work In Process Inventory

Goods partially completed in the manufacturing process, not yet ready for sale.

Units Transferred Out

The complete quantity of units that have moved through a production process and are sent out from a specific department or the entire production system.

Processing Department

A section within a manufacturing facility where specific types of operations or treatments are carried out on products.