Question

Which accurately explains how profit is calculated? A. Benefits and costs are balanced. B. Total retail sales are determined. C. Gross domestic product is calculated. D. Costs are subtracted from revenues.

Answer 1

Costs are subtracted from revenues.

Step-by-step explanation:

As we know

Profit is calculated when the cost is subtracted from revenues.

In mathematically,

The profit = Revenues - cost

The profit which would be calculated above is shown in the debit side of the income statement.

As the income statement records all the expenses or cost incurred and all the revenues which are generated