what is profit?

Question

Profit is the financial gain earned when revenue exceeds expenses. Learn its meaning, types, calculation methods, importance, and business applications.

Aaron Smith · Accepted Answer

Profit, in accounting, is an income distributed to the owner in a profitable market production process. Profit is a measure of profitability which is the owner's major interest in the income-formation process of market production.

Sahil Raghavan · Answer

Profit for a common man is the difference between the cost and the sale price of a product.If the person sells the product on higher price than his cost price the difference he makes on the sale is his profit.In terms of accounting it means the same but on a broader spectrum,that is,the money earned from a business activity after paying off all the expenses,costs and taxes of production.There are three different types of profit,Gross profit,operating profit and net profit.

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Vanisha Anand · Answer

Profit in accounting term can be described as the income earned by the owners of a particular business in a profitable market. This is distributed in equal or in decided ratios. The income which is generated in the market is always greater in ratio then the income distributed. This profit income generated is distributed between the stakeholders of the production. Profit is a way by which any firm can develop more productions.