GENERAL KNOWLEDGE

Detailed explanation-1: -Net profit looks at how much money your business has left after all expenses have been deducted.

Detailed explanation-2: -Profit is the money you have left after paying for business expenses. There are three main types of profit: gross profit, operating and net profit. Gross profit is biggest. It shows what money was left after paying for the goods and services sold.

Detailed explanation-3: -Net profit reflects the amount of money you are left with after having paid all your allowable business expenses, while gross profit is the amount of money you are left with after deducting the cost of goods sold from revenue.

Detailed explanation-4: -Net income is also referred to as net profit since it represents the net amount of profit remaining after all expenses and costs are subtracted from revenue.