What is defined as the situation when revenues exceed expenses?

The situation where revenues exceed expenses is defined as profit. This concept is fundamental in economics and business because it indicates that a company or organization is not only covering its costs but is also generating a surplus. Profit reflects the financial health of a business and is often a primary objective for companies, as it can be reinvested into the business for growth, distributed to shareholders, or saved for future needs.

In this context, break-even refers to the point at which total revenues equal total expenses, meaning there is neither profit nor loss. A loss occurs when expenses surpass revenues, indicating negative financial performance. Investment relates to the allocation of resources, typically financial, to generate income or profit over time, but it does not directly define the relationship between revenues and expenses. Therefore, profit is the accurate term for the scenario described in the question.