The relationship between sales and profits can be written as
A) sales revenues + expenses = profit.
B) loss + profit = sales revenue.
C) profi―expenses = sales revenue.
D) expenses + loss = sales revenue + profit.
E) sales revenue―expenses = profit.

Question

Quizplus · Accepted Answer

The equation that represents the relationship between sales and profits is sales revenue minus expenses equals profit. This is because profit is the amount of money left over after a company has paid for all of its expenses. Therefore, the best choice is E, which states that sales revenue minus expenses equals profit.

The Relationship Between Sales and Profits Can Be Written as