The amount of money left after operating expenses are deducted for the business refers to
A)net profit.
B)gross profit.
C)operating profit.
D)earnings before tax.

Question

Quizplus · Accepted Answer

Net profit is the amount of money a business has left over after deducting all operating expenses, including taxes and interest, from its gross profit. It represents the true financial performance of the business and is also known as the bottom line or earnings. Gross profit is the total revenue minus the cost of goods sold, and operating profit is the profit generated from the regular operations of the business. Earnings before tax is the profit earned by the business before accounting for taxes. Therefore, the correct answer is A) net profit.

The Amount of Money Left After Operating Expenses Are Deducted