Profit

Definition

  • The money made by a business when revenues exceed expenses

Synonyms
making a profit, raking in the cash, making money

Related Terms and Acronyms

  • Accounting Period (AP) Acronym, Important,
    • The time period used in a set of accounting books or financial statements, often 12 months.
  • Capital Definition,
    • Money that is used to make money; for example, to buy rental property or a business.
  • Cash Flow Forecast Definition,
    • An estimate of when and how much money will be received and paid out of a business. It usually records cash flow on a month-by-month basis for a period of two years.
  • Deficit Definition,
    • When expenses surpass income or liabilities surpass assets.
  • Earned Income Definition,
    • Money earned through wages, salaries, tips, net earnings (if self-employed), and any other income received for work or personal services. Investment income, such as dividends and interest, is not counted as earned income.
  • Economic Growth Definition,
    • The rate of change in output from one year to the next.
  • Expense Definition,
    • Costs incurred through a business's operations.
  • Fixed Expenses (FE) Acronym,
    • Fixed business costs that do not change regardless of business volume, such as property rental, insurance payments, utilities, etc.
  • Fixed-Return Investments Definition,
    • Investments that provide a stable return.
  • Insurance Cycle Definition,
    • A cycle of soft and hard market conditions observed in the insurance and underwriting industry.
  • Investment Income Definition,
    • Income that is earned from investments such as interest, dividends, and capital gains.
  • Loss Definition,
    • When expenses are larger than revenues.
  • Net Operating Loss (NOL) Acronym, Very Important,
    • A net loss for the tax year because of business or casualty losses. Taxpayers may use an excess loss of one year as a deduction for certain past or future years.
  • Operating Cash Flow (OCF) Acronym,
    • The money a company generates from its business operations. This revenue excludes costs from certain investments.
  • Ordinary Dividends Definition,
    • The distribution of a company's profits that are subject to full taxation.
  • Other Income/Expenses Definition,
    • Any income or expenses earned or disbursed by a business that are not clearly associated to its core operations.
  • Protected Cell Company (SPC) Acronym,
    • A company that separates its assets and liabilities into a number of 'cells' to shield itself and each 'cell' from losses.
  • Recognized Gain or Loss Definition,
    • The amount of gain or loss reported for income tax purposes. You may be able to defer recognizing gain or loss on certain property exchanges, such as like-kind exchanges.
  • Revenue Definition,
    • Money earned by a company from its business activities.
  • Solvency Definition,
    • To be able to meet one's financial liabilities in the short or long term.
  • Stock Insurance Company Definition,
    • An insurance company with multiple stockholders each owning shares in the corporation.
  • Sub Account Definition,
    • A separate financial account used to keep track of a department's finances.
  • Surplus Definition,
    • When an entity's income exceeds its expenses.
  • Swap Definition,
    • An agreement between two businesses to exchange commodities, payments or other financial products to reduce the risk of volatile market conditions or to obtain a better price or rate. For example, interest rate swaps, where floating rate interest is exchanged for fixed rate interest, protects a corporation against rises in rates or allows it to take advantage of a better rate. A cross-currency swap enables two parties to enter into an agreement in which one exchanges its currency for the other's to meet their separate requirements.
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