Question

What is the difference between gross earnings and net earnings for person's earnings from a job ? Use in your own words.

Answer 1

gross income is an intermediate earnings figure before all expenses are included, and net income is the final amount of profit or loss after all expenses are included. For a wage earner, gross income is the amount of salary or wages paid to the individual by an employer, before any deductions are taken.For a wage earner, net income is the residual amount of earnings after all deductions have been taken from gross pay, such as payroll taxes, garnishments, and retirement plan contributions.

Answer 2

Gross earning are all profits obtained by the project without deductions

Net earning are the net earning of the project after deducting costs, expenses and taxes

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Gross earning is the final result of the trading account and is carried forward to the profit and loss account to be added to the income outside the sales activity and then deducted all operating and administrative expenses, etc. The result is either net profit or loss ..

Another meaning is that the total profits are the result of trading account and net and net earning is the result of calculating profits and losses ..

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