GENERAL KNOWLEDGE

Detailed explanation-1: -Profit is calculated by deducting expenditures from revenue, whereas income is calculated by deducting all expenses spent by a firm. 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-2: -The term earnings is most commonly used when discussing the bottom line of a company’s income statement. The term profit is commonly associated with the three most important points on the income statement: gross profit, operating profit, and net profit. These items reflect a company’s operational efficiency.

Detailed explanation-3: -The difference between income and expenses is simple: income is the money your business takes in and expenses are what it spends money on. Your net income is generally your revenue, or all the money coming into your business, minus all of your expenses.