IndigoLearn

Forums

All Topics Accountancy Auditing Corporate & Other Laws Direct Taxation Indirect Taxation Financial Management Economics Costing Strategic Management Maths & Stats Exams Others AFM Financial Reporting CFA Level I

Doubt

Accountancy

Sir, Does gross profit and gross income is same? Does net profit and net income is same? If not please explain me the difference....

Sakthi Praveen

CA Inter

★ 2K+

22-Jul-20 16:48

371

Answers (2)

I think there terminology difference i.e., gross profit and net profits are used for manufacturing companies and companies whose business involeves goods Net income and gross incomes are terminology used for service sectors Am i right,...?ð???

Thread Starter

Sakthi Praveen

CA Inter

★ 2K+

22-Jul-20 16:53

Thread Starter

Sakthi Praveen

Gross Income and Gross profit ( in context of a business entity) are same and so are Net Income and Net profit. There is no differentiation between Manufacturing or service sectors