Question

if a business has $2,000 assets, $1,500 liabilities, $2,000 revenue and $800 expenses in the current period, what is the amount of profit in this period?

Answer 1

To find the profit for the current period, subtract the expenses ($800) from the revenue ($2,000), resulting in a profit of $1,200.

Step-by-step explanation:

To calculate the amount of profit for the current period, we need to subtract the expenses from the revenue. Given the information that a business has $2,000 revenue and $800 expenses, the calculation would be:

Profit = Revenue - Expenses

Profit = $2,000 - $800 = $1,200

Accounting profit is calculated as total revenue minus explicit costs. In this case, the business has $2,000 in revenue and $800 in expenses, so the accounting profit would be $2,000 - $800 = $1,200.

To find the profit for the current period, subtract the expenses ($800) from the revenue ($2,000), resulting in a profit of $1,200.

Therefore, the amount of profit for the current period is $1,200.