unit-2-nature-and-scope-of-accounting

Unit-2 Nature and Scope of Accounting

This unit elaborates the need for accounting and then discusses the nature, scope and importance of accounting.

What is profit?





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Learning Pundits Content Team

Written on Apr 17, 2019 2:40:06 PM

Profit is a financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity. Any profit that is gained goes to the business's owners, who may or may not decide to spend it on the business. Profit is calculated as total revenue less total expenses. Profit is the money a business makes after accounting for all expenses. Regardless of whether the business is a couple of kids running a lemonade stand or a publicly traded multinational company, consistently earning profit is every company's goal. As a result, much of business performance is based on profitability in its various forms.