Profit

Definition

• The money made by a business when revenues exceed expenses

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

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.