📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    âš¡ Month End Offer - Flat 52% Off On All Courses! Enroll Now âš¡
    00:00:00 AM Left

    Question

    What is the difference between gross profit and net

    profit in accounting?
    A Gross Profit = Revenue – Cost of Goods Sold; Net Profit = Revenue – Expenses Correct Answer Incorrect Answer
    B Gross Profit = Revenue + Cost of Goods Sold; Net Profit = Revenue – Expenses Correct Answer Incorrect Answer
    C Gross Profit = Revenue – Expenses; Net Profit = Revenue + Cost of Goods Sold Correct Answer Incorrect Answer
    D Gross Profit = Revenue – Cost of Goods Sold; Net Profit = Revenue + Expenses Correct Answer Incorrect Answer

    Solution

    Gross Profit and Net Profit are both important indicators of a company’s financial health. While both of these measures represent the profitability of a business, they are calculated using different formulas and provide different insights into a company’s financial performance.

    Practice Next
    More ESIC Part B Questions

    Relevant for Exams:

    ask-question