GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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For a business, income remaining after payment of expenses is:
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loss
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profit
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capital
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debt
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Explanation:
Detailed explanation-1: -Net profit (also called net income or net earnings) is the value that remains after all expenses, including interest and taxes, have been deducted from revenue.
Detailed explanation-2: -As a general rule, an increase in any type of business expense lowers profit. Operating expenses are only one type of expense that reduces net sales to reach net profit.
Detailed explanation-3: -Profit is the difference between how much money is spent and earned in a specific time period, whereas income is the actual amount of money earned in that time period.
Detailed explanation-4: -Net income or loss represents the difference between a company’s revenues and expenses during an accounting period.
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