The gross earnings of a business or company are the total receipts before deducting expenditures. Net earnings are the excess of the gross earnings over the expenditures defrayed in producing them, and aside from and exclusive of capital laid out in constructing and equipping the works or plant. State v. Railroad Co., 30 Minn. 311. 15N. W. 307; People v. Roberts, 32 App. Div. 113, 52 N. Y. Supp. 859; Cincinnati, S. & C.It. R. Co. v. Indiana. B. & N. Ity. Co., 44 Ohio St. 287, 7 N. E. 139; Mobile & O. R. Co.v. Tennessee. 153 U. S. 480. 14 Sup. Ct. 90S. 38 L. Ed. 703; Union Pac. R. Co. v. U. S.,99 U. S. 420, 25 L. Ed. 274; Cotting v. Railway Co., 54 Conn. 150, 5 Atl. 851.
Link to This DefinitionDid you find this definition of GROSS EARNINGS AND NET EARNINGS helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary