CA Foundation Exam > CA Foundation Questions > Profit is the difference between?a)The assets...
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Profit is the difference between?
- a)The assets received for goods and services and the amounts used to provide the goods and services
- b)Assets and liabilities
- c)Assets and equities
- d)The assets purchased with cash contributed by the owner and the cash spent to operate the business
Correct answer is option 'A'. Can you explain this answer?
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Profit is the difference between?a)The assets received for goods and s...
We can describe profit as the difference between the selling price and the cost price of a product/service. Profit in company accounting can be divided into two – gross profit and net profit. Gross profit is the revenue minus cost of goods sold. Earned income is the income from the sales of goods or services.
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Profit is the difference between?a)The assets received for goods and s...
Profit is the difference between:
The correct answer to this question is option 'A' - "The assets received for goods and services and the amounts used to provide the goods and services." Profit is one of the most important financial indicators for a business as it represents the financial gain that a company earns from its operations.
Explanation:
To understand why option 'A' is the correct answer, let's break down the components involved.
1. Assets received for goods and services:
- When a business provides goods or services to its customers, it receives assets in return. These assets can include cash, accounts receivable, or other valuable resources.
- Assets are economic resources that a company owns or controls, which have the potential to generate future economic benefits. They can be tangible, such as inventory or property, or intangible, such as patents or trademarks.
2. Amounts used to provide the goods and services:
- In order to provide goods and services, a business incurs various costs and expenses. These expenses may include the cost of raw materials, labor, rent, utilities, and other operating expenses.
- These amounts used to provide goods and services are deducted from the assets received to determine the profit of the business.
3. Profit:
- Profit is the excess of revenue over expenses. In other words, it is the amount left over after deducting the costs and expenses from the revenue generated by the business.
- Profit represents the financial success of a business and is an important measure of its performance. It indicates the ability of the business to generate a positive return on investment and sustain its operations.
Conclusion:
In summary, profit is the difference between the assets received for goods and services and the amounts used to provide the goods and services. It is the financial gain that a business earns from its operations and is a key indicator of its performance and success.
The correct answer to this question is option 'A' - "The assets received for goods and services and the amounts used to provide the goods and services." Profit is one of the most important financial indicators for a business as it represents the financial gain that a company earns from its operations.
Explanation:
To understand why option 'A' is the correct answer, let's break down the components involved.
1. Assets received for goods and services:
- When a business provides goods or services to its customers, it receives assets in return. These assets can include cash, accounts receivable, or other valuable resources.
- Assets are economic resources that a company owns or controls, which have the potential to generate future economic benefits. They can be tangible, such as inventory or property, or intangible, such as patents or trademarks.
2. Amounts used to provide the goods and services:
- In order to provide goods and services, a business incurs various costs and expenses. These expenses may include the cost of raw materials, labor, rent, utilities, and other operating expenses.
- These amounts used to provide goods and services are deducted from the assets received to determine the profit of the business.
3. Profit:
- Profit is the excess of revenue over expenses. In other words, it is the amount left over after deducting the costs and expenses from the revenue generated by the business.
- Profit represents the financial success of a business and is an important measure of its performance. It indicates the ability of the business to generate a positive return on investment and sustain its operations.
Conclusion:
In summary, profit is the difference between the assets received for goods and services and the amounts used to provide the goods and services. It is the financial gain that a business earns from its operations and is a key indicator of its performance and success.
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Profit is the difference between?a)The assets received for goods and services and the amounts used to provide the goods and servicesb)Assets and liabilitiesc)Assets and equitiesd)The assets purchased with cash contributed by the owner and the cash spent to operate the businessCorrect answer is option 'A'. Can you explain this answer?
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Profit is the difference between?a)The assets received for goods and services and the amounts used to provide the goods and servicesb)Assets and liabilitiesc)Assets and equitiesd)The assets purchased with cash contributed by the owner and the cash spent to operate the businessCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Profit is the difference between?a)The assets received for goods and services and the amounts used to provide the goods and servicesb)Assets and liabilitiesc)Assets and equitiesd)The assets purchased with cash contributed by the owner and the cash spent to operate the businessCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Profit is the difference between?a)The assets received for goods and services and the amounts used to provide the goods and servicesb)Assets and liabilitiesc)Assets and equitiesd)The assets purchased with cash contributed by the owner and the cash spent to operate the businessCorrect answer is option 'A'. Can you explain this answer?.
Profit is the difference between?a)The assets received for goods and services and the amounts used to provide the goods and servicesb)Assets and liabilitiesc)Assets and equitiesd)The assets purchased with cash contributed by the owner and the cash spent to operate the businessCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Profit is the difference between?a)The assets received for goods and services and the amounts used to provide the goods and servicesb)Assets and liabilitiesc)Assets and equitiesd)The assets purchased with cash contributed by the owner and the cash spent to operate the businessCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Profit is the difference between?a)The assets received for goods and services and the amounts used to provide the goods and servicesb)Assets and liabilitiesc)Assets and equitiesd)The assets purchased with cash contributed by the owner and the cash spent to operate the businessCorrect answer is option 'A'. Can you explain this answer?.
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Profit is the difference between?a)The assets received for goods and services and the amounts used to provide the goods and servicesb)Assets and liabilitiesc)Assets and equitiesd)The assets purchased with cash contributed by the owner and the cash spent to operate the businessCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Profit is the difference between?a)The assets received for goods and services and the amounts used to provide the goods and servicesb)Assets and liabilitiesc)Assets and equitiesd)The assets purchased with cash contributed by the owner and the cash spent to operate the businessCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Profit is the difference between?a)The assets received for goods and services and the amounts used to provide the goods and servicesb)Assets and liabilitiesc)Assets and equitiesd)The assets purchased with cash contributed by the owner and the cash spent to operate the businessCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
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