Profit is the difference between
A) assets and liabilities
B) the incoming cash and outgoing cash
C) the assets purchased with cash invested by stockholders 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 of money earned by a business after deducting the cost of goods sold and other expenses from the revenue generated by sales. It is the difference between the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services. Options A, B, and C are incorrect as they do not accurately describe the concept of profit.

Profit Is the Difference Between