Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 6 - No. 33)
What is the relationship between gross profit and net profit?
Gross profit is always higher than net profit.
Net profit is always higher than gross profit.
They are always equal.
They have no direct relationship.
Explanation
Net profit is calculated after deducting all expenses, which reduces it from the gross profit.
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