What is gross profit?

Can you explain what is gross profit and how it differ from net profit before and after taxes

Megrisoft Financial Consultant Asked on October 30, 2014 in Accounting.
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2 Answer(s)

Gross Profit =Sales –┬áCost of goods sold (Cost of goods sold= Opening stock+Purchases+Direct Expenses-Closing Stock)
Net Profit (Before Tax)= Gross Profit- Indirect Expenses
Net Profit (After Tax)= Net Profit Before Tax- Tax

CA Ritika Mittal Accountant Answered on October 30, 2014.
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A company’s revenue minus its cost of goods sold. Gross profit is a company’s residual profit after selling a product or service and deducting the cost associated with its production and sale.

Priyanka Gupta Accountant Answered on October 31, 2014.
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