What is the term for money earned after expenses are subtracted from revenue?

Prepare for the FBLA Exploring Business Concepts Test. Dive into multiple choice questions covering key business concepts. Understand the exam format with hints, explanations, and tips for success. Get ready for your exam!

The term for money earned after expenses are subtracted from revenue is profit. Profit is a key indicator of a business's financial health, as it represents the amount of money that remains after all costs associated with running the business, including operating expenses, taxes, and interest on debt, have been deducted from the total revenue generated by the sale of goods or services.

Understanding profit is crucial for evaluating how effectively a business is managing its operations and generating financial returns. It is distinct from revenue, which refers to the total income generated before any expenses are deducted. While income can sometimes be used interchangeably with profit in a broader context, it often refers to earnings or inflows from various sources rather than the specific calculation of what's left after costs. Capital relates to the funds that a business uses to finance its operations or growth, not the earnings post-expenses. Thus, profit is the accurate term for the net amount remaining after expenses are accounted for.

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