Which of the following statements is the definition of "net profit"?

Question

Reconciliation of income minus checks written
Income minus the deductions of all expenses
Income minus taxes paid
Income minus gross payroll amounts

Answer 1

Income minus the deductions of all expenses

Rationale: Net profit is income minus the deductions of all expenses. In strict business terms, it is the total amount of revenue, usually income and sales, minus expenses (usually costs of inventory and running the business).