The amount of profit would always be equal to the ending cash balance.

Question

Quizplus · Accepted Answer

Profit is determined by subtracting all expenses (including cost of goods sold, operating expenses, interest expenses, taxes, etc.) from the revenue earned during a particular period. Therefore, the amount of profit cannot always be equal to the ending cash balance as there may be other factors that affect the cash balance such as accounts receivable, accounts payable, inventory, capital expenditures, etc.

The Amount of Profit Would Always Be Equal to the Ending