GED Math Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the GED Math Test with our comprehensive quiz. Practice with multiple choice questions and get detailed hints and explanations to boost your confidence and skills. Enhance your test readiness today!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What does the term 'net' refer to in a financial context?

The total income before taxes and expenses
The amount of salary remaining after deducting taxes, expenses, etc.
The gross income
The total expenses for a given period

The correct answer is: The amount of salary remaining after deducting taxes, expenses, etc.

In a financial context, the term 'net' refers to the amount remaining after all deductions have been made. This typically includes expenses, taxes, and other allowable deductions from gross income. It represents the actual earnings that an individual or organization retains, providing a clearer picture of financial health. The concept of 'net' is critical for understanding how much money is truly available for savings, investments, or personal use after fulfilling financial obligations. By focusing on this remaining amount, individuals and businesses can make more informed decisions about budgeting and future financial planning.