explain the concepts of net profit
Answers
Answer:
A company's profit is called net income or net profit. ... Net income reflects the total residual income that remains after accounting for all cash flows, both positive and negative. In other words, from revenue, which is called the top-line number, all income, expenses, and costs are deducted to arrive at net .
Answer:
Net Income
A company's profit is called net income or net profit. Since net income is the last line located at the bottom of the income statement, it's also referred to as the bottom line.
Net income reflects the total residual income that remains after accounting for all cash flows, both positive and negative. In other words, from revenue, which is called the top-line number, all income, expenses, and costs are deducted to arrive at net income.
From the operating profit figure, debt expenses such as loan interest, taxes, and one-time entries for unusual expenses such as lawsuits or equipment purchases are all subtracted. All additional income from secondary operations or investments and one-time payments for things such as the sale of assets are added.