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Accounting

Revenue, expenses, and profit

Profit measures what remains after expenses are subtracted from revenue.

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Secondary exploration · university · professional skills

AI-assisted draft · Educator review not completed · Unofficial supplementary resource

Last educator review: none. Content updated: 10 September 2026.

Learning objective

Explain revenue, expenses, and profit, reproduce the worked example and justify a decision in the case study.

Before you begin

Read a short instruction; for calculations, add, subtract and multiply.

Understand

Profit measures what remains after expenses are subtracted from revenue.

Worked example

Sales: 10,000 HTG. Expenses: 6,000 HTG. Profit: 10,000 − 6,000 = 4,000 HTG.

Analysis and common mistakes

Profit margin divides profit by revenue: 4,000 / 10,000 = 40%. It differs from markup on cost, here 4,000 / 6,000 ≈ 66.7%. Confusing them changes a calculated price.

Case study — reasoning

If expenses rise by 1,000 HTG while sales stay constant, profit becomes 3,000 HTG and margin 30%. Sales growth alone does not guarantee profit growth.

Knowledge check

Summary

Profit measures what remains after expenses are subtracted from revenue.

Sources for further study and verification

AI-assisted draft · Educator review not completed · Unofficial supplementary resource