Profit Is Defined as

question 581

Multiple Choice

Profit is defined as

• A)net revenue minus depreciation.
• B)total revenue minus total cost.
• C)average revenue minus average total cost.
• D)marginal revenue minus marginal cost.

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Definitions:

Capital Balances

The amounts in a business's equity accounts that represent the owners' stakes in the company.

Noncash Assets

Assets owned by a business that cannot be easily converted to cash, such as property, plant, and equipment.

Loss on Realization

A financial loss recognized when liquidating assets yields less value than initially recorded on the books.

Income Ratio

A financial metric comparing some form of an entity's income to another, providing insights into financial stability, profitability, or performance.