Profit: Difference between revisions
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*Items in cash flow which are not part of profit. For example capital expenditure or the collection of debtors recognised in prior periods; and | *Items in cash flow which are not part of profit. For example capital expenditure or the collection of debtors recognised in prior periods; and | ||
*Items in profit which are not cash flows | *Items in profit which are not cash flows. For example depreciation, amortisation, or making accruals. | ||
Revision as of 12:06, 24 December 2020
1. Accounting
A surplus arising from the appropriate matching of revenues with expenditure.
For example, operating profit or net profit.
The profit for a period may differ from the cash flow because of:
- Items in cash flow which are not part of profit. For example capital expenditure or the collection of debtors recognised in prior periods; and
- Items in profit which are not cash flows. For example depreciation, amortisation, or making accruals.
2.
More generally any surplus, gain or net benefit arising.
See also
- Accrual
- Amortisation
- Attributable profit
- Break-even
- Business
- Capital expenditure
- Cash flow
- Debtors
- Depreciation
- Gross profit
- Loss
- Net profit
- Net profit margin
- Not-for-profit
- Operating profit
- Profit and Loss account
- Profit and Loss reserve
- Profit margin
- Profit maximisation
- Profit warning
- Profitability
- Recognition
- Turn
- Underlying
- Unrealised profit
