Which of the following is TRUE regarding revenue and profit?

Question

Quizplus · Accepted Answer

Revenue and profit are not the same thing. Revenue refers to the total amount of money a company earns from its operations, while profit is the amount of money the company earns after subtracting all its expenses from its revenue. Both revenue and profit are found on the company's Income Statement, which summarizes its revenues and expenses over a given period of time. Option A is false because revenue and profit have different meanings. Option C is false because profit is not equal to liabilities plus Stockholders' equity. Option D is also false because revenue is found on the Income Statement, not on the Balance Sheet.

Which of the Following Is TRUE Regarding Revenue and Profit