One of the owners of a sports bar franchise wants to take extra money out of the business,given the organization's successful year.What accounting figure should he look at to determine how much money can be distributed to himself and the other owners?
A) gross profit
B) net profit
C) gross revenue
D) net revenue

Question

Quizplus · Accepted Answer

The owner should look at the net profit figure to determine how much money can be distributed to himself and the other owners. This is because net profit represents the amount of money the business has made after deducting all expenses, including taxes, interest, and other costs. This figure tells the owner how much money the business has available to distribute as profits or reinvest in the business. Gross profit only takes into account the cost of goods sold, not all expenses. Gross revenue and net revenue are not commonly used accounting terms.

One of the Owners of a Sports Bar Franchise Wants