Profit& Loss

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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.
1. General: Unrecoverable and usually unanticipated and non-recurring removal
of, or decrease in, an asset or resource.
2. Accounting: (1) cost that produces no benefit, (2) decrease in value, (3)
excess of expenditure over income, (4) excess of cost over the net proceeds
from a transaction.
3. Insurance: (1) reduction in the value of an insured property due to an insured
peril, (2) amount sought in an insurance claim, or (3) amount paid under an
insurance contract.


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