Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

How net profit can be calculated?

Options:

Gross profit + indirect expenses + other incomes + tax

Gross profit - indirect expenses + other incomes - tax

Gross profit - indirect expenses + other incomes + tax

Gross profit - indirect expenses - other incomes - tax

Correct Answer:

Gross profit - indirect expenses + other incomes - tax

Explanation:

Net profit refers to profit after tax (PAT).
NET PROFIT= Gross profit - indirect expenses + other incomes - tax