Net (economics)

Net (economics)

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In economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...

, net means after deductions. A related concept is gross
Gross (economics)
In economics, gross means before deductions. The antonym is net, meaning after deductions.-Usage:In this sense, it may appear an adjective, following the noun it modifies, e.g., "earned two million dollars, gross"...

, meaning before deductions.

Nett is an alternative spelling used in British English.

Usage


In this sense, it may appear, separated by a comma, following the noun it modifies, e.g., "earned two million dollars, net". Alternatively, it can be used as a verb: "this deal netted the firm two million dollars".

Examples

  • Net worth
    Net worth
    In business, net worth is the total assets minus total outside liabilities of an individual or a company. For a company, this is called shareholders' preference and may be referred to as book value. Net worth is stated as at a particular year in time...

  • Net income
    Net income
    Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period. Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings...

  • Net profit
    Net profit
    Net profit or net revenue is a measure of the profitability of a venture after accounting for all costs. In a survey of nearly 200 senior marketing managers, 91 percent responded that they found the "net profit" metric very useful...

  • Net pay
    Net pay
    Net pay is the remaining amount after deductions from the gross salary, where net means ultimate.Example deductions: income taxes, trade union dues, it mean authorized deduction for a retirement...

  • Net 30
    Net 30
    Net 30 is a form of trade credit which specifies that the net amount is expected to be payment received in full 30 days after the goods are dispatched by the seller, or 30 days after the service is completed. Net 30 terms are often coupled with a credit for early payment; e.g...