Net Profit Is the Amount a Company Earns After Paying

question 40

True/False

Net profit is the amount a company earns after paying to produce or buy its products but before deducting operating expenses.

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Definitions:

Expenses

The costs incurred in the operation of a business or the execution of a specific project.

Assets

Resources owned or controlled by a business or individual that are expected to produce economic value or benefit in the future.

Return on Assets

A measure of how effectively a company is using its assets to generate earnings.

Revenues

Revenues are the total amount of money received by a company for goods sold or services provided during a specific period.