Profit is the increase in equity resulting from the profitable operations of the business. It is the amount by which revenue exceeds expenses, and it represents the value added by the business to its shareholders or owners. Options A, C, and D are not correct definitions of profit.

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Profit Is

Question 69

Multiple Choice

Profit is:

A) The excess of debits over credits.
B) The increase in equity resulting from the profitable operations of the business.
C) The excess of credits over debits.
D) The increase in assets of a company during a year.

Correct Answer: