Which of the following is not one of the component of profit? |
Dividend Retained Earning Tariffs Corporate Tax |
Tariffs |
The correct answer is Tariffs. Profit is the difference between revenue and expenses. It is the amount of money that a business has left over after it has paid all of its costs. Retained earnings, dividends, and corporate taxes are all components of profit. Retained earnings are the profits that a business keeps and reinvests in itself. Dividends are the profits that a business pays out to its shareholders. Corporate taxes are the taxes that a business pays on its profits. Tariffs, on the other hand, are not a component of profit. Tariffs are taxes that are imposed on imported goods. They are a cost of doing business, and they are not included in the calculation of profit. |