Which term describes the money a company makes after subtracting expenses from revenue?

Which term describes the money a company makes after subtracting expenses from revenue?

• A. Profit
• B. Ledgers
• C. Total Sales (Revenue)
• D. Earnings (Profit/Bottom Line)

Answer: (A)

Profit is the money a company makes after subtracting expenses from revenue. It represents the bottom-line result of operations, showing net income after all costs are paid. Revenue, or total sales, is the money earned before deductions, so it isn’t the final amount left. Ledgers are just the records that track financial transactions, not the actual earnings. Earnings and the bottom line convey a similar idea, but profit is the straightforward term that answers this question directly.

Profit is the money a company makes after subtracting expenses from revenue. It represents the bottom-line result of operations, showing net income after all costs are paid. Revenue, or total sales, is the money earned before deductions, so it isn’t the final amount left. Ledgers are just the records that track financial transactions, not the actual earnings. Earnings and the bottom line convey a similar idea, but profit is the straightforward term that answers this question directly.