Q: When people speak about the bottom line, they are referring to:
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A
Net Profit
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B
Gross Margin
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C
Gross Profit
A
Answer:
A
Explanation:
The correct answer is:
A. Net Profit ✅
👉 Explanation:
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The phrase “bottom line” comes from the fact that Net Profit (or Net Income) appears at the last line (bottom line) of the Income Statement.
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It shows the company’s final profitability after deducting all expenses, taxes, and interest.
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Gross Profit and Gross Margin are higher up in the statement and do not represent the final outcome.
⚡ In short:
Bottom line = Net Profit (true profitability).
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