--%>

State Net Profit

State Net Profit in brief?

E

Expert

Verified

Net Profit: In simple terms, net profit exhibits the amount that a company earns after paying all expenditures. When we deduct tax, dividend and reserve from this income, we can transfer it to balance sheet as retained earnings for future growth of business.

Net profit = Gross profit - indirect expenses

   Related Questions in Financial Accounting

  • Q : Avoidable Interest The book says

    The book says "avoidable interest is the amount of interest cost during the period that a company could theoretically avoid if it had not made expenditures for the asset." This makes it sound like avoidable interest is the total amount of interest paid for an asset. I know it's not but I was wonder

  • Q : Increase the return without any

    Suppose that treasurer of IBM has an extra cash reserve of $1,000,000 to invest for the six months. Six-month interest rate is 8% per annum in U.S. and 6% per annum in the Germany. Presently, spot exchange rate is DM1.60 per dollar and six-month forward exchange rate

  • Q : APV capital budgeting framework How APV

    How APV capital budgeting framework is useful for analyzing the foreign capital expenditures?

  • Q : Operation of currency forward and

    Describe basic differences between operation of a currency forward market and a futures market.

  • Q : Review the accounting cycle the

    Assignment: The purpose of this assignment is to review the accounting cycle--the procedures that businesses normally use to record transactions during the year and prepare financial statements at the end of the year.  The accounting cycle is discussed in Chapter 3 of your textbook. &nb

  • Q : Fictitious Assets Define the terms

    Define the terms Fictitious Assets?

  • Q : Corruption of Creativity Explain the

    Explain the Corruption of Creativity in Creative Industry ? Explain in brief.

  • Q : Retail Invoice versus Tax Invoice

    Explain the difference between Retail Invoice vs. Tax Invoice?

  • Q : Segmented capital market Assume that

    Assume that your firm is operating in the segmented capital market. State some of the actions that you would recommend to diminish the negative effects?

  • Q : Determinants of operating exposure

    Describe determinants of the operating exposure.