ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -EBT is calculated by subtracting expenses from income, before taxes. It is one of the line items on a multi-step income statement. Net income: Net profit can be defined as the amount of money you earn after deducting allowable business expenses. It is calculated by subtracting total expenses from total revenue.

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. This figure represents a company’s profit after all its costs have been paid.

Detailed explanation-3: -Total revenue is the amount of sales revenue you have made before your expenses are deducted on the income statement. It is the top line of the income statement as compared with the bottom line, which is net income or net profit. Net income is the metric that indicates what you have left after expenses are deducted.

Detailed explanation-4: -Finding profit is simple using this formula: Total Revenue-Total Expenses = Profit.

Detailed explanation-5: -What is gross profit? Also referred to as net income, gross profit measures a company’s dollar amount profits after deducting its production costs. In other words, gross profit equals a business’s total sales revenue minus its costs of production, commonly known as cost of goods sold (COGS).