Question 20
Business CalculationsWhich of the following statements best describes net profit? The excess of
- A.total revenue over total expenditure
- B.total capital income over expenditure
- C.sales over purchases
- D.total capital formation over capital consumption
- E.total expenditure over total revenue
Show the answer and explanation
Answer: A (total revenue over total expenditure)
Explanation
Net profit is what remains when all expenses are taken from all revenue.