ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A business’ profit after all other expenses have been deducted. GP-EXPENSES
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Sales revenue-cost of sales
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Net profit-tax deduction
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None of the above
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Detailed explanation-1: -Gross profit is the total revenue of a company minus the expenses directly related to the production of goods for sale (i.e., the cost of goods sold). Derived from gross profit, operating profit reflects the residual income that remains after accounting for all the costs of doing business.
Detailed explanation-2: -Net income is the profit that remains after all expenses and costs have been subtracted from revenue. Net income-also called net profit-helps investors determine a company’s overall profitability, which reflects how effectively a company has been managed.
Detailed explanation-3: -What Is Operating Income? Operating income is an accounting figure that measures the amount of profit realized from a business’s operations after deducting operating expenses such as wages, depreciation, and cost of goods sold (COGS).