The equation Revenue - Expenses = Profit/Loss is found on the Income Statement

Question

BlackTom AI · Accepted Answer

The statement under consideration is: Revenue - Expenses = Profit/Loss. 
Option 1: True. 
To analyze, recall that the income statement reports a company’s financial performance over a period of time, showing revenues earned and expenses incurred. The net result, often called net income or profit (or loss if negative), is calculated by subtracting total expenses from total revenues. In other words, Profit/Loss = Revenue − Expenses, which is a direct representation of the core equation used on the income statement. 
There are common sources of confusion that this statement helps to clarify: some people mix up gross profit with net income, or confuse operating income with overall net profit. However, when you subtract all expenses (cost of goods sold, operating expenses, interest, taxes, etc.) from all revenues, you indeed arrive at the bottom-line Profit or Loss for the period. 
Since the equation aligns with the fundamental structure of the income statement, this option correctly states the relationship between revenue, expenses, and profit or loss. 
Note: In many course materials, the same idea may be presented using slightly different phrasing (for example, Net Income = Revenues − Expenses). The essential concept remains the same: revenues minus expenses yield profit or loss, which is the central purpose of the income statement.

VPAB13H3 F LEC01 Week 9 Quiz

The equation Revenue - Expenses = Profit/Loss is found on the Income Statement

查看解析

登录即可查看完整答案

类似问题

The income statement is also known as the:

At the bottom of income statement you will find the:

Question at position 22 The financial statement in which the cost of goods sold and expenses are subtracted from total revenue to arrive at a net income figure is a/an ______.income statementbalance sheetcash flow statemententrepreneur’s scorecard

What is this document called?

Question12 Using the area-of-interest method and considering the above events only, the profit before tax for the year ended 30 June 2022 is: 2,000,000 None of the options 8,720,000 10,000,000 -1,280,000 (i.e. a loss) ResetMaximum marks: 1 Unflag question undefined

When analysing financial statements, which statement helps you assess the long-term financial health and profitability of a company?

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单