Question

Excess of revenue over its cost _______________.

• A. Cost
• B. Profit
• C. Income
• D. Loss

Answer 1

The correct option is B Profit

At the end of a specified period normally a year, every business prepare a statement i.e. profit & loss account to know about the profitability of the organization.

There are two sides of profit & loss account. One side the revenue are recorded and on another side costs are recorded. Excess of revenue over the cost is called profit and vice versa.