Profit

Definition: The excess of revenues or proceeds over the applicable costs and expenses for a defined activity or period.

Example

A business earns $80,000 and incurs $65,000 of expenses, producing $15,000 profit under the stated accounting method.

Keep the distinction clear

Gross profit, net profit, taxable income, and cash flow use different deductions or timing. Identify the measure before calculating or comparing results.

Related terms

Income Statement · Net Income · Cash Flow

Keep studying

Income Approach: NOI, Cap Rate, Property Value, and Cash-on-Cash Return

References: FREC Course II syllabus: investment concepts

Pronunciation (US): PRAH-fit (capitals show stress)

Pronunciation reference: Merriam-Webster