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What Is the Difference Between Gross Amount and Net Amount?

By Matthew Frankel, CFPUpdated Dec 16, 2024 at 12:25 PM

Key Points

  • Gross income is total revenue minus production costs; it doesn't include other business expenses.
  • Net income subtracts all costs from gross, showing true profit.
  • Understanding gross vs. net helps assess actual business profitability.

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