Basics of Accounting › Elements of Accounting › Question #24243
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QWhen people speak about the bottom line, they are referring to:

ID: #24243 Elements of Accounting 50 views
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#24243Q ID
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Elements of AccountingTopic
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  • A Net Profit ✔ ✖
  • B Gross Margin ✔ ✖
  • C Gross Profit ✔ ✖
Correct Answer: Option A

Explanation

The correct answer is:

A. Net Profit ✅

👉 Explanation:

  • 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.

  • It shows the company’s final profitability after deducting all expenses, taxes, and interest.

  • 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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