In accounting terms,profits are _____.
A)the difference between revenues and expenses
B)the sum of commissions earned and receipts
C)the difference between sales and expenses
D)the sum of sales and expenses

Question

Quizplus · Accepted Answer

Profits are the amount of revenue that remains after deducting expenses. Therefore, the correct option is the difference between revenues and expenses. Option B is incorrect because commissions earned are just a part of revenue, not an indication of profit. Option C is close but not entirely accurate because revenues can come from sources other than sales, such as investments. Finally, option D is incorrect because it adds sales and expenses instead of subtracting expenses from revenues.

In Accounting Terms,profits Are _____