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What is Net?

Net (Definition)

Net in accounting, sometimes spelled nett, refers to the amount that remains after deductions are made. A business’ financial statements refers to a number of things, including net assets - the value of assets after the deduction of liabilities, and net revenue – the amount left after refunds, returns and similar items are deducted. Net earnings (or net income) are what remains after all expenses are deducted, while net margin is the net income divided by the revenue and shown as a percentage. Net investment is the gross total investment, minus the amount of a replacement investment (which can be influenced by depreciation, among other things).

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