Differentiating Profit from Loss

What is the formula to calculate profit?

• Revenue - Expenses

• Expenses - Revenue

• Revenue + Expenses

• Expenses ÷ Revenue

When a business's expenses exceed its revenue, it incurs a...

• Profit

• Loss

• Break-even

• Investment

If a business sells products worth $10,000 but its expenses are $12,000, the business has a...

• Profit of $2,000

• Loss of $2,000

• Profit of $10,000

• Loss of $10,000

Which of the following represents a profit?

• Revenue = $5,000, Expenses = $7,000

• Revenue = $10,000, Expenses = $8,000

• Revenue = $3,000, Expenses = $5,000

• Revenue = $6,000, Expenses = $7,500

Profit occurs when...

• Expenses are higher than revenue

• Revenue is higher than expenses

• Expenses and revenue are equal

• Revenue is zero

If a business makes $5,000 in sales and has $4,000 in expenses, what is the profit?

• $1,000

• $5,000

• $4,000

• $9,000

Loss occurs when...

• Revenue is higher than expenses

• Expenses are higher than revenue

• Revenue is zero

• Both revenue and expenses are zero

A company had a revenue of $15,000 and expenses of $10,000. What is the profit?

• $5,000

• $10,000

• $15,000

• $25,000

What happens to a business when revenue equals expenses?

• Profit

• Loss

• Break-even

• Bankruptcy

If a company's revenue is $7,500 and expenses are $10,000, it has a...

• Profit of $2,500

• Loss of $2,500

• Profit of $7,500

• Loss of $10,000