The money earned or made over a specified time period like a day, a week, month or year is called as revenues.
The costs that is incurred to make money like buying raw materials, transforming the raw material to finished product, costs incurred in selling the product are known as expenses.
You are watching: Profit equals the total amount of money made minus
The surplus amount from revenues that is left after deducting all the expenses is known as profit.
Rearranging we get,
The most basic accounting equation for profit is Profit = Revenue – Expenses. By definition, profit is the revenue earned after accounting for all expenses/ costs. The “total amount of money” referred to in the question is what we called revenue. In general, revenue is the money received from the sales of goods or services. The simple way to find revenue is by multiplying the number of goods sold with its respective selling price.
Based on the type of expenses we use in calculation, there are 2 types of profit, gross profit, and net profit. In accounting, we referred to gross profit as the revenue we received after deducting the Cost of Goods Sold (COGS), which is the cost of making the product. Whereas net profit is the revenue we received after deducting the Cost of Goods Sold (COGS) and operating expenses. In other words, Net Profit = Gross Profit – Operating Expenses. Some example of operating expenses includes tax, utility and rent expenses.
It is possible for a business to generate gross profit, but suffers from loss. This happens when the operating expenses, or we often called overhead, are bigger than the gross profit. As a result, it might have zero or negative net profit.
If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:
Business leaders practice vertical integration:
Value of business people in the US:
KEYWORD: expenses, profit, money, type of expense, business, net profit, operating expense
: Brooklyn has 18
If you take 14 and subtract it from 32 you will get 18. by using variables 14 + = 32. then solve it at a 1 step equation
Raul opened a savings account with $3,500.
See more: What Does Written In The Stars Mean Ing Of Written In The Stars In English
Each week, Dale pays the dog sitter $25 from his saving account.
Let d be the number of weeks and f(d) be the function representing the amount of money in the account after Raul pays the dog sitter d weeks.
The amount of money in the Raul"s account is decreasing each week by $25, then the slope of the linear function is