MANAGEMENT

Detailed explanation-1: -Profit refers to the difference between how much money is spent and earned in a given time period, while income represents the actual amount of money earned in a given time period.

Detailed explanation-2: -Profit simply means revenue that remains after expenses, and corporate accountants calculate profit at a number of levels. For example, gross profit is revenue less a specific type of expense: the cost of goods sold (COGS). Gross profit is also called gross margin or gross income.

Detailed explanation-3: -Net income is the profit left after deducting total expenses from gross income. Understanding the difference between the two is key to understanding your business’s financial health.

Detailed explanation-4: -Whereas revenue is the income generated before expenses, profit is the income that remains after subtracting all expenses. These can include anything from inventory costs to taxes.

Detailed explanation-5: -An income statement shows a company’s revenues, expenses and profitability over a period of time. It is also sometimes called a profit-and-loss (P&L) statement or an earnings statement. It shows your: revenue from selling products or services.