The amount of value added or lost in a business during a specific operating period of time. Net profit is often referred to as Net Income, Net earnings or The Bottom Line. Net Profit is calculated by subtracting a company’s total expenses from total revenue, thus showing what the company has earned (or lost) in a given period of time.
Net Profit represents the difference between revenue and expense for a company in the specific period when an activity occurred, regardless of when cash is received or paid out.
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