Revenue Less Expenses Is Equal To

Net income is revenue less expenses.

Revenue less expenses is equal to. Also referred to as return on sales. Operating income is equal to total revenues minus cost of goods sold labor and general. Answers 2 cathmor 7 february 03 15. Other names for net income are profit net profit and the bottom line income is realized differently depending on the accounting method used.

Contribution margin is equal to sales revenue less total variable expenses incurred to earn that revenue. B because revenue is your profit and when you bring in less than what you are spending then you are at a loss. And loss is when the expenses are greater than revenue means that the revenue is less and the. C expenses bu tcgs should be minus before expenses.

Contribution margin contribution margin contribution margin is a business sales revenue less its variable costs. Revenue is often referred to as the top line because it sits at the top of the income statement. Profit is the balance when you pay all of the expenses the remainder that is left is the profit. Exactly equal to my gross profit it would mean that i am at.

Net sales gross sales customer discounts returns allowances gross profit net sales cost of goods sold operating profit gross profit total operating expenses net profit operating profit taxes interest net profi. In a service firm contribution margin is equal to revenue from provision of services less all variable expenses incurred to provide such services. Total variable expenses include both manufacturing and non manufacturing variable expenses. It is a profitability ratio measuring revenue after covering operating and non operating expenses of a business.

Revenue is less than expenses c. In that scenario if my fixed expenses like electricity expenses salary expenses bank interest etc. When a business uses the accrual basis accounting method the revenue is counted as soon as an invoice is entered into the accounting system. Correct answer is c expenses less revenues will arrive net income.

The revenue number is the income a company generates before any expenses are taken out. Net income plus operating expenses equals gross profit or total revenue.