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Q:

Gross Profit means–

  • 1
    Total investment over total savings
  • 2
    Changes in methods of production
  • 3
    Changes in the form of business organisation
  • 4
    Total receipts over total expenditure.
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Answer : 4. "Total receipts over total expenditure."
Explanation :

Gross profit = Net sales (total receipts) - Cost of goods  sold (total expenditure)

In other words it is the total receipt over total cost.

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