By Definition, Profits Are

question 59

Multiple Choice

By definition, profits are

• A)total output minus total inputs.
• B)total revenue plus total costs.
• C)total revenue minus total costs.
• D)total inputs minus total output.
• E)total costs minus total revenue.

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Definitions:

Profit

The financial gain achieved when the amount of revenue gained from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Unrealised

Refers to profits or losses that have occurred on paper due to changes in value but have not been realized through an actual transaction.

Consolidation

The process of combining the financial statements of separate but related entities to present as those of a single economic entity.

NCI

Non-Controlling Interest, a minority shareholding in a subsidiary not owned by the parent company, reflecting those shareholders' claim on assets and earnings.