What equation represents the financial outcome of an organization based on revenue and expenses?

The equation that accurately represents the financial outcome of an organization is based on subtracting expenses from revenue. This relationship is essential because it provides insight into the organization's profitability or financial performance over a specific period. When revenue exceeds expenses, the result is a profit, indicating positive financial health. Conversely, if expenses surpass revenue, the outcome reflects a loss, signaling potential financial challenges.

Thus, the correct equation, which is revenue minus expenses, concisely encapsulates the fundamental concept of determining whether an organization has generated a surplus or deficit in its financial activities. Understanding this relationship is crucial for managing budgets, making informed decisions, and strategizing for financial stability in an assisted living environment.