Question

Select the most appropriate alternatives from those given below and rewrite the statements :

Surplus of income over expenses is ______.
a) Loss
b) Profit
c) Financial Societies
d) Deficit

Answer 1

Surplus of income over expenses is Profit.

Explanation:
An excess of income over expenses is called profit, as the amount spent is less than the amount earned, whereas an excess of expenses over income is termed as loss.

Deficit refers to an excess of cash outflows over cash inflows. It refers to a shortfall of cash in the business.