GROSS PROFIT Definition

GROSS PROFIT is net sales minus cost of sales.

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CASH is money, in the form of notes and coins, which constitutes payment for goods at the time of purchase.

BACKUP WITHHOLDING is a mandatory withholding that may be imposed when rules regarding taxpayer identification numbers, (usually a Social Security number) are not met by the individual. Another way for these withholdings to take effect is when a notice is issued by the IRS to withhold on payments to that individual. Backup withholding may be claimed as a credit by taxpayers on their federal income tax return.

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