ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It’s the difference between the total revenue and the fixed cost
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It’s the difference between the total revenue earned and the amount spent.
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It’s the difference between the total revenue and the opportunity cost.
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It’s the difference between the total revenue and the variable cost
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Detailed explanation-1: -Profit is a financial term that refers to any revenue left over after expenses are accounted for. In other words, profit is the difference between how much money is earned and how much is spent on operating or producing something at the end of a set period.
Detailed explanation-2: -Profit is the money you have left after paying for business expenses. There are three main types of profit: gross profit, operating and net profit. Gross profit is biggest. It shows what money was left after paying for the goods and services sold.
Detailed explanation-3: -Revenue is the total amount of income generated by the sale of goods or services related to the company’s primary operations. Profit, which is typically called net profit or the bottom line, is the amount of income that remains after accounting for all expenses, debts, additional income streams, and operating costs.
Detailed explanation-4: -Profit: The excess of revenues of a period over its related expenses during an accounting year is termed as profit.
Detailed explanation-5: -Accounting profit, also referred to as bookkeeping profit or financial profit, is net income earned after subtracting all dollar costs from total revenue. In effect, it shows the amount of money a firm has left over after deducting the explicit costs of running the business.