What Is Profit and Revenue?
Revenue is price times quantity and sits at the top of the income statement (SEC).
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1.What is revenue?
Revenue is price times quantity and sits at the top of the income statement (SEC).
2.What is profit?
Net profit, also called net income, is what remains after all expenses including income taxes; it is the bottom line (SEC).
3.Marge sells 120 cups at 2.50 each. What is her revenue?
Revenue is price times quantity: 2.50 times 120 is 300 (worked example).
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Sources (2)
- US SEC: Beginners' Guide to Financial Statements (Income Statement)
- Eigene Berechnung (synthetische Limonadenstaende, Python)
Education only. Not financial advice.