Profit is the net income earned after all costs and expenses have been deducted from total revenues. It is generally understood to mean the after tax earnings. However, profit should always be qualified and taken in context when discussed as there are several different meanings and conditions that impact its interpretation by business entrepreneurs.
No other business term is so misunderstood, misstated, misleading or deceiving as the words ‘net profit’. Accounting defines net profit as the amount earned after all associated costs and expenses are subtracted from the […]