Difference Between Net Profit and Gross Profit
Profit is one of the most significant measures of a company’s financial well-being, but profits differ. Two critical metrics—gross profit and net profit—serve distinct purposes when assessing a firm’s performance. Gross profit is the profit after excluding the direct costs of goods or services manufactured, whereas net profit is the actual profit after deduction of […]
What is the Going Concern Concept?
The going concern concept is a principle that assumes a business entity will continue operating for the foreseeable future, typically in the next 12 months. This signifies that the company doesn’t plan or anticipate ceasing operations, liquidating its assets, or significantly reducing its business scale. Why is the Going Concern Concept Important? This concept is […]