Which term corresponds to revenue minus expenses representing profit after costs?

• A. Net worth
• B. Income
• C. Net profit
• D. Gross profit

Answer: (C)

Net profit is the amount left after subtracting all expenses from revenue. It captures the profit after covering COGS and all other costs like operating expenses, interest, and taxes, giving the true bottom-line figure. This distinguishes it from gross profit, which only subtracts cost of goods sold from revenue and doesn’t account for operating expenses. Net worth is a balance-sheet measure of assets minus liabilities, not a profit figure. Income is a broader term for earnings and can refer to revenue or other measures, but the precise term for profit after costs is net profit.