Final answer:
Net Profit, also known as accounting profit, is calculated by subtracting explicit costs, including depreciation, from total revenues. It differs from economic profit, which also considers implicit costs.
Step-by-step explanation:
Net Profit is also called accounting profit, which is the total revenues minus explicit costs, including depreciation. This is a cash concept representing the difference between the dollars brought in and the dollars paid out. However, there's also a concept of economic profit, which is the total revenue minus total cost, including both explicit and implicit costs. The distinction between accounting profit and economic profit is significant because it affects a business's income tax and its overall economic success.