Revenues Minus Expenses Equals

Accounting auditing financial reporting financial management finance.

Revenues minus expenses equals. Question added by altaf bhoon aca finance manager united construction dmcc date posted. Revenues minus all expenses equals net income profits or losses. Gross profit is the total revenue minus the expenses directly related to the production of goods for sale called the cost of goods sold. Derived from gross profit operating profit reflects the.

Upvote 3 views 6619 followers 27 write an answer register now or log in to answer. Does gross profit minus expenses equal. To calculate net income accountants subtract total expenses from total revenues. Profit is directly related to products and services.

Gross income is basically revenues and gains minus expenses and losses. Some analysts call these accounting profits because they include non cash accounting entries such as depreciation and amortization. Revenues minus expenses equals income revenue is often referred to as the top line because it sits at the top of the income statement. Net sales gross sales customer discounts returns allowances gross profit net sales cost of goods sold operating profit gross profit total operating expenses net profit operating profit taxes interest net profi.

Profits are also referred to as net income or the bottom line because profits are reported at the bottom of the income statement. Operating profit is gross profit minus all other fixed and variable expenses associated with operating the business such as rent utilities and payroll. Since revenue is the income earned by a company it is the income generated before the cost of goods sold cogs operating expenses capital costs and taxes are deducted.