What is net profit? What is gross profit? What is deprication?

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Net profit is the profit after all expenses are deducted. Gross profit is the profit before expenses are deducted. Depreciation is the decrease in value of an asset over time.

Net profit is calculated by subtracting all expenses from total revenue.
Gross profit is calculated by subtracting the cost of goods sold from total revenue.
Depreciation is a non-cash expense that reflects the decrease in value of an asset over time.
Depreciation is usually calculated using the straight-line method or the accelerated method.
For example, if a company has total revenue of $100,000 and total expenses of $80,000, the net profit would be $20,000.
If the cost of goods sold for the same company was $30,000, the gross profit would be $70,000.
Depreciation can be applied to assets such as buildings, equipment, and vehicles.
Depreciation is important for accounting purposes as it allows companies to accurately reflect the value of their assets over time.

What is net profit? What is gross profit? What is deprication?

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