ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The financial gain made in transactions is the difference between the cost of the goods or services and the selling price.

Detailed explanation-2: -A gain refers generally to the positive difference between the price of something at acquisition and its current price. A net gain takes transaction costs and other expenses into consideration. A gain may also be either realized or unrealized.

Detailed explanation-3: -"Transaction Profit” can be either a profit or a loss. For greater certainty, Transaction Profit shall not include any revenue, Costs or Company Profit recognized by either party as a result of either consolidating, equity accounting or cost accounting for a party’s ownership interest share in the Company.

Detailed explanation-4: -There are three main measures of profit. These are gross profit, operating profit and net profit.

Detailed explanation-5: -Gain: A profit that arises from events or transactions which are incidental to business such as the sale of fixed assets, winning a court case, appreciation in the value of an asset. Profit: The excess of revenues of a period over its related expenses during an accounting year is termed as profit.