profit

  

Definition

The surplus remaining after total costs are deducted from total revenue, and the basis on which tax is computed and dividend is paid. It is the best known measure of success in an enterprise.

Profit is reflected in reduction in liabilities, increase in assets, and/or increase in owners' equity. It furnishes resources for investing in future operations, and its absence may result in the extinction of a company. As an indicator of comparative performance, however, it is less valuable than return on investment (ROI). Also called earnings, gain, or income.


Use profit in a sentence

  • When the company accountant finish counting that quarter's earnings, she realized they were more successful than anticipated and had earned a large profit.

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  • It is sad that most of the people in the world are looking for how they can profit off of other people and what they can get out of it for themselves.

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  • When you are running a business at the end of the day the main thing that matters is how much profit you were able to make.

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