What is defined as the money made from an investment after deducting expenses?

Prepare for the Illinois PAS Crop Specialist Test. Study using our comprehensive flashcards and multiple-choice questions, each with helpful hints and detailed explanations. Get ready to ace your exam!

The term that is defined as the money made from an investment after deducting expenses is "Net return." This concept represents the actual profit that is realized after one has taken into account all costs and expenses incurred while making the investment. For example, if an investor earns revenue from crop sales, the net return would be calculated by subtracting expenses such as production costs, labor, and other relevant expenditures from the total revenue generated.

This concept is critical in agriculture and investment, as it helps farmers and investors assess the true success and viability of their ventures. Understanding net return allows them to make informed decisions about future investments, resource allocation, and overall business strategies to maximize profitability.

In contrast, gross income refers to the total earnings before any expenses are deducted, while net profit usually applies to the overall earnings of a business after all expenses have been deducted from total revenue. Total revenue simply represents the total amount received from sales before any deductions are made. Therefore, net return is the most appropriate term for the definition given in the question.

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