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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.


More generally any surplus, gain or net benefit arising.

See also