Q:

What is a gross amount?

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Quick Answer

A gross amount is used to refer to the total amount of something that was created or received as the result of an activity. The term is commonly used to refer to profit or revenue, but it can also be used in terms of the total weight of an object.

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Full Answer

Gross weight, for example, refers to the total weight of any object plus any packaging or accessories that are attached to it. Net weight, on the other hand, refers to the actual weight of the object without packaging. In addition, net income means any money accrued after taxes and other deductions (payroll, admin and other costs) have been taken off the gross income.

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Related Questions

  • Q:

    How do you define gross income?

    A:

    In the simplest terms, gross income refers to all income received by a person or corporation in a set period of time; for individuals, this includes payment accrued from all sources before taxes, while it includes total revenue for organizations before accounting for product sales. Gross income for people and companies comes from many sources; researchers at the Cornell University Law School Legal Information Institute maintain a list of qualifying sources, which includes gains, interest, royalties and fee-based compensation.

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    What is the meaning of gross pay?

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    An employee’s gross pay is the money earned from working before taxes and other deductions. An employee’s gross pay includes the money they earn from commissions, overtime and tips.

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    How do you calculate gross profit?

    A:

    To calculate gross profit, subtract the cost of goods sold from the amount of total sales for the specified time period. The result is the pre-expense profit derived by the company, also known as the gross profit.

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  • Q:

    How do you calculate marginal revenue?

    A:

    To calculate marginal revenue, evaluate the amount that you collect per increase in production of a single unit. Gather invoices and ledgers to get total revenue to match against revenue change.

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