WAEC Accounting 2014 Paper

Concept:Net profit is the final profit left after all expenses of running the business, including operating or working expenses, have been deducted from revenue.Explanation:Net profit is not simply the money taken out by the owner, nor the cash balance in the bank.It is also different from gross profit, which is only the difference between sales and cost of sales.To find net profit, first calculate gross profit.Then subtract all other business expenses for the period.Thus, net profit can be expressed as:$$\text{Net Profit} = \text{Sales Revenue} - \text{Cost of Sales} - \text{All Other Operating Expenses}$$Alternatively, it is the excess of gross profit over the remaining expenses of the business.Answer:Net profit is sales revenue less cost of sales and all other expenses of the business.Therefore, the correct option is Option D.