Ace the DECA Financial Consulting Challenge 2026 – Unleash Your Business Superpower!

Question: 1 / 400

Which financial metric assesses profitability after all expenses have been deducted?

Gross Profit

Net Profit

Net profit is the financial metric that accurately reflects profitability after all expenses have been deducted, including operating costs, interest, taxes, and any other expenses. It represents the actual profit available to shareholders and indicates the effectiveness of a company's management in controlling costs and generating profit.

By considering all expenses, net profit provides a comprehensive view of a company's financial health, allowing stakeholders to evaluate performance and profitability. This metric is often used to assess the viability and sustainability of a business over time, as it shows what remains after all financial obligations are met.

In contrast, gross profit only accounts for revenues minus the cost of goods sold, neglecting other operating and non-operating expenses. Operating profit considers operating expenses but still does not include interest and taxes. Revenue growth is a measure of sales increase over time but does not indicate profitability at all, focusing instead on top-line performance. Thus, net profit stands out as the most holistic measure of profitability.

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Operating Profit

Revenue Growth

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