The effect of profit on the accounting equation is to:

Name: The effect of profit on the accounting equation is to:
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Profit increases equity, as it represents an increase in the company's overall value. Specifically, profit is added to retained earnings, which is part of equity in the accounting equation. Profit does not directly affect assets or liabilities, and it may or may not have an impact on expenses, depending on the nature of the profit.

The Effect of Profit on the Accounting Equation Is To