Final answer:
To calculate profit or loss, subtract expenses from revenue. A positive result indicates profit while a negative result indicates loss.
Step-by-step explanation:
To calculate profit or loss, you need to know the revenue (money earned) and the expenses (money spent) during a specific period. In this case, we are looking at the January account.
If the revenue is greater than the expenses, it means there is a profit. If the revenue is less than the expenses, it means there is a loss. To find the profit or loss, subtract the expenses from the revenue. If the result is positive, it represents profit. If the result is negative, it represents loss.
For example, if the revenue for January was $500 and the expenses were $400, the calculation would be: $500 - $400 = $100. Therefore, the profit for the January account would be $100.