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Accounting profit, calculated as revenue minus all costs, directly impacts stock prices. Economic profit includes opportunity cost, providing deeper insight into resource utilization. Cash flow, often ...
Your business's income statement is a long string of pluses and minuses. You start with your sales revenue, subtract costs of goods sold to get gross profit, then subtract expenses to get net profit.
A company generates sales revenue as a result of operating activities. These operating activities involve the sale of goods or services to customers. Revenue exists as an account found on a company's ...