Net Profit

Definition

The final profit of a business after deducting all indirect operating expenses, non-operating expenses, and taxes from Gross Profit. It represents the actual earnings available to the owners.

Example

"Gross Profit of ₹2,50,000 minus indirect expenses (rent, salaries, depreciation) of ₹1,20,000 = Net Profit of ₹1,30,000."

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