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

Question

Quizplus · Accepted Answer

The most common and straightforward formula for the relationship between sales and profits is that profit equals sales revenue minus expenses. This means that the total revenue generated by sales is used to cover costs and expenses, with the remaining amount being the profit earned. Therefore, E is the best choice as it directly represents this formula.

The Relationship Between Sales and Profits Can Be Written as