Profit: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Add links.)
imported>Doug Williamson
(Add link.)
Line 55: Line 55:
*[[Profitability]]
*[[Profitability]]
*[[Return]]
*[[Return]]
*[[Revenue]]
*[[Statement of profit or loss]]
*[[Statement of profit or loss]]
*[[Supernormal profit]]
*[[Supernormal profit]]

Revision as of 15:52, 20 July 2022

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