Profit is the difference between
A) assets and liabilities
B) the incoming cash and outgoing cash
C) the assets purchased with cash contributed by the owner and the cash spent to operate the business
D) the amounts received from customers for goods or services and the amounts paid for The inputs used to provide the goods or services

Question

Quizplus · Accepted Answer

Profit is the amount earned by subtracting the costs associated with providing goods or services from the revenue earned by selling those goods or services. Therefore, the best choice is D as it accurately describes the calculation of profit as the difference between the amounts received from customers for goods or services and the amounts paid for the inputs used to provide those goods or services.

Profit Is the Difference Between