Which statement best describes net total profit?

The statement that net total profit is the total revenue after all costs accurately defines the term in the context of financial analysis. Net total profit, often referred to as net income or net profit, represents the amount remaining from total revenue after all expenses, including operating costs, taxes, and interest, have been deducted. This measure is critical because it gives a true reflection of a business's profitability, showing how much money is actually generated after covering all expenditures.

In contrast, gross earnings before costs would not account for any expenses incurred, making it an incomplete figure for assessing profitability. Similarly, reflecting only cash transactions does not consider credit transactions or other forms of revenue that can be included in total revenue. Finally, while net total profit can indicate aspects of future profit potential, it does not directly depict future earnings; rather, it is a retrospective measure of a company’s past performance based on actual revenues and expenses.