Question 30
Business CalculationsThe net profit is the excess of gross profit and sources of income over all the expenses. This implies that net profit is
- A.the difference between gross profit and gross trade expenses.
- B.the difference between gross profit and net sales.
- C.sales less cost of sales including sales returns.
- D.opening stock add purchases less closing stock.
Show the answer and explanation
Answer: A (the difference between gross profit and gross trade expenses.)
Explanation
Net profit is what remains of gross profit after all trading expenses are taken off.