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What is the correct difference between profit and revenue?

Answer and explanation

Correct answer: Revenue is total sales income, while profit is what remains after expenses

Revenue is the income earned from sales or business operations before deducting business expenses. Profit is the surplus left after relevant expenses are subtracted from revenue; if expenses exceed revenue, there is a loss instead. Borrowed money is financing, not revenue. Since profit is calculated from revenue after costs, the two terms are not interchangeable.

Related tags

RevenueProfitFinance BasicsConceptNature And Importance Of Business FinanceConcept Nature And Importance Of Business FinanceSources Of Business FinanceBusiness StudiesClass 11 Mcq

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