Accounting



What is the difference between gross profit and net profit?

Gross profit is sales revenues minus the cost of goods sold.

The term net profit might have a variety of definitions. I assume that net profit means all revenues minus all expenses including the cost of goods sold, the selling, general, and administrative (SG&A) expenses, and the nonoperating expenses. At a corporation it may also mean after income tax expense.

Learn more about the Income Statement.

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Comments

12 Responses to “What is the difference between gross profit and net profit?”

  1. Raja on February 11th, 2010 4:45 am

    i want to know the other income & other expenses which r used in income statment i.e. Rent, Interest, Dividend, Discount. that when these expense will be treated as general & Admin expneses, & when these r treated as other expense in income statments.

  2. adil on February 13th, 2010 8:39 pm

    sir:what is the difference between cost and Expense?what should we call to this if we are using an mobile card?expense or cost

  3. adil on February 13th, 2010 8:40 pm

    what is the difference between managment accounting and Cost accounting?

  4. adil on February 13th, 2010 8:43 pm

    sir: Give me Details About different Ratios in financial accounting like liquidity ratio,profiyability ratio………

  5. hiedar on March 7th, 2010 2:27 am

    what is Event study in efficient market( EM )?

  6. anupama govekar on March 8th, 2010 12:28 am

    can u please send me detail of all your accounting books which i can study at home & then i will give ur exam so please send me cost of these books at the earliest in indian rupees. i will be thankful to you.
    tell me the way also how to make your payment?

  7. waheedullah on March 8th, 2010 1:39 am

    dear sir…………hopw to fine and going well

    just i want to say that i want to join with online AccountingCoach

    so answer me as soon as you can
    thanks

  8. srinivas on March 8th, 2010 9:54 am

    what is the difference between grossprofit and net profit

  9. Muhammad Zuahib on March 9th, 2010 9:26 am

    gross income after deducting operating exp. and cost of ggod sold while net income is come after deduting tax and others

  10. olaitan on March 9th, 2010 1:23 pm

    can you please send me the meaning and calculationsof these accounting calculations like,margin, mark-up, rate of turnover and so on.

  11. abdul majid on May 24th, 2010 2:51 am

    dear sir
    please refer me the book name and it,s price in pakistani rupees smple stage of accounting for learning

  12. basharat on July 7th, 2010 4:21 am

    sir my Q is that
    why share of preferred stock are not shown and common stock are shown, as expense in income statement?

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