Which of the following accurately explains how profit is calculated?

Costs are subtracted from revenues.

Profit can be calculated in many ways. But to find profit, you must take your total earnings and subtract it by your expenses. Showing your profit.

Example equation:

T-E=P

(P: Profit.)

(E: Expenses)

(T: Total Earnings)

Remember, expense includes tax too. Before you can cash out a check, it goes through your taxes and removes the amount for the pay of the tax (es).