Management And Marketing Practice Test

Which term represents the profit left after deducting all expenses?

Profit Total Sales (Revenue) Earnings (Profit/Bottom Line) Annual Report

Correct Answer:

Earnings (Profit/Bottom Line)

Explanation:

Net income, the amount remaining after subtracting all expenses from revenue, is commonly called earnings or the bottom line. This term best fits the idea of what’s left after every cost—operating expenses, interest, taxes, depreciation—has been deducted. It clarifies that you’re talking about net profitability, not revenue or a document. The other options either describe revenue before expenses (total sales), a financial document (annual report), or use a term that can be ambiguous between gross and net profit (profit). So, earnings (profit/bottom line) correctly identifies the net profit.

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