Question

If your gross profit is greater than your total operating expenses, your income statement will show net ______.

Answer 1

Gross profit is a company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement or can be calculated with this formula

Answer 2

The answer is net loss.

Net loss is the amount by which the total cost and expenses exceeds the total revenue in an accounting period.

Net loss also called loss, refers to a company's financial position when total expenses exceed total revenues. In other words, net loss is the amount of money the company lost during the period. This is the negative amount of cash that is left over after all the expenses have been paid during the period. If the total revenues were greater than total expenses, the company would have net income instead of net loss. Net loss is calculated by subtracting total expenses from total revenues.