MANAGEMENT

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. If the value of net profit is negative, then it is called net loss.

Detailed explanation-2: -Profit simply means revenue that remains after expenses, and corporate accountants calculate profit at a number of levels. For example, gross profit is revenue less a specific type of expense: the cost of goods sold (COGS).

Detailed explanation-3: -Profit describes the financial benefit realized when revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity in question.

Detailed explanation-4: -Profit basics In simple terms, your business’s profit (or loss) is the difference between your income and your expenses. Remember that profit is not the same as the amount of cash you have in the bank or your total sales. Profit is the total financial gain you make from sales (on paper) after all expenses are paid.

Detailed explanation-5: -Net profit (also called net income or net earnings) is the value that remains after all expenses, including interest and taxes, have been deducted from revenue. This is the final figure located at the bottom of the income statement.