ECONOMICS

Detailed explanation-1: -Net profit is the amount of money your business earns after deducting all operating, interest, and tax expenses over a given period of time. To arrive at this value, you need to know a company’s gross profit.

Detailed explanation-2: -Net profit is the difference between a company’s revenue and its expenses. It is calculated by subtracting a company’s total costs from its total revenue.

Detailed explanation-3: -Revenue is the total amount of income generated by the sale of goods or services related to the company’s primary operations. Revenue, also known as gross sales, is often referred to as the “top line” because it sits at the top of the income statement. Income, or net income, is a company’s total earnings or profit.

Detailed explanation-4: -Net profit is the sales income minus all the business costs. This is often shown as the formula: Sales-Direct costs = Gross profit-Overheads = Net profits.

Detailed explanation-5: -Operating revenues describe the amount earned from the company’s core business operations. Sales of goods or services are examples of operating revenues. Non-operating revenues refer to the money earned from a business’s side activities. Examples include interest revenue and dividend revenue.