Multiple Choice
Profit equals the total amount of money made (net sales) minus which of the following?
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4. Merchandising Operations
Net Sales
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Net income is also called your _________.
A
gross revenue
B
profit
C
total assets
D
net sales
Verified step by step guidance1
Understand the concept of net income: Net income is the amount of profit a company earns after deducting all expenses, taxes, and costs from its total revenue.
Review the options provided: The options are gross revenue, profit, total assets, and net sales.
Eliminate incorrect options: Gross revenue refers to the total income generated before any deductions, total assets represent the resources owned by the company, and net sales are the revenue after deducting returns and allowances.
Identify the correct term: Net income is synonymous with profit, as it represents the earnings remaining after all expenses have been accounted for.
Conclude that the correct answer is 'profit' based on the definition and elimination of other options.
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