The Excess of Revenues Over Expenses Is Called a Net

question 9

True/False

The excess of revenues over expenses is called a net profit.

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Definitions:

Net Income

The total profit of a company after all revenues, gains, expenses, and losses have been accounted for.

Average Rate of Return

A financial metric used to evaluate the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Present Value Factors

Numerical factors used in calculating the present value of a future amount, considering the time value of money.

Internal Rate of Return

The discount rate that makes the net present value of all cash flows (both positive and negative) from a particular project or investment equal to zero.