Asked by habibatou diallo on May 07, 2024
Verified
Net income and net profit do not mean the same thing.
Net Income
The profit of a company after all expenses, including taxes and costs, have been deducted from total revenue.
Net Profit
The actual profit after working expenses not included in the calculation of gross profit have been paid.
- Understand the fundamental principles of income, expenses, and profit in accounting.
Verified Answer
HS
Hassaan SajjadMay 14, 2024
Final Answer :
False
Explanation :
Net income and net profit are terms that are used interchangeably to refer to the amount of earnings left over after all expenses have been deducted from revenues.
Learning Objectives
- Understand the fundamental principles of income, expenses, and profit in accounting.