Question

A bussiness reports profits when ___ are greater than___.

Answer 1

The answer is D, Revenues, Expenses

A business reports profits when Revenues are greater than Expenses.

Revenue is money or income that is generated as a result of business activities, simply by the sale of any product or service of the company.

Expense is the cost that is incurred to produce or deliver a service to the customers.

So when the Revenues of a company are greater than the expenses of the company in a given year, the company is said to be generating Profit that year. Similarly, if the Expenses are greater than Revenues, the company is said to be in Loss.