Accounting MascotAccounting Q&A

What is profit from operations?
submitted by jdahab

rhonda

In accounting, the word operations refers the company's main purpose. If they sell shoes, then making and selling shoes would be their operations. If they invest some of that income, that's not their main purpose, but it still produces income.

So, to answer your question, profit from operations is the income earned from the main business activity.

the jetsons

It's how much money a company makes from its core business activities, like selling products or services. You get that number after you subtract all the operating expenses like wages, rent, and utilities. It doesn't include things like interest or taxes.

jorge

It shows how profitable a company's main business is. You find it by taking total revenue and subtracting the cost of goods sold and all operating expenses.

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