Net profit is computed in which of the following?

  • A. Balance sheet.
  • B. Income statement
  • C. Cash flow statement
  • D. Statement of changes in equity

Answer: Option B

Detailed Answer

Net profit is computed in Income statement. Net income, also called net profit, is a calculation that measures the amount of total revenues that exceed total expenses. It other words, it shows how much revenues are left over after all expenses have been paid.

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