Profit leads to an increase in:
ALiabilities
BOwner’s equity
CAssets
DDebts
Answer:
B. Owner’s equity
Read Explanation:
PROFIT
Definition: Profit is the excess of total income over total expenses.
Source: It is generated from the usual (core) business operations.
Effect: Leads to an increase in owner's equity. Profit is calculated by deducting the cost from the sale or revenue, which is earned by the regular business operations.
GAIN:
A gain is referred to as any economic benefit derived from outside of the usual business operations.
Gain is the profit that arises from events or transactions which are incidental to business such as profit sale of fixed assets, winning a court case, appreciation in the value of an asset.