Net Income or Net Profit

question 98

Multiple Choice

Net Income or Net Profit

• A) Are the same
• B) Net Income is less than Net Profit
• C) Net Profit is the profit before expenses are deducted
• D) None of the above

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Definitions:

Profits

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to maintain the operation.

Re-Invested

Capital or earnings that are put back into a business or investment to support growth or generate additional revenue.

Company

An entity engaged in commercial, industrial, or professional activities, either as a single individual or a group of people structured as a corporation, partnership, or sole proprietorship.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.