ptofit and loss account1

May 13th, 2015
Studypool Tutor
Adelphi University
Price: $25 USD

Tutor description

profit and loss statement describe Concepts Of Profit

Word Count: 1550
Showing Page: 1/39
CONCEPTS OF PROFITNeeraj KumarIntroductionJust like rent is the reward for land, wagesfor labor and interest for capital, profit isthe reward for entrepreneurship. profit is the income of an entrepreneurforutilizinghisentrepreneurialabilities and running a business. Profit is nothing but the surplus amount leftwith the entrepreneur after paying all thefactors of production.Therefore, profit can also be defined as thedifference between the total value ofoutput (total revenues received by thebusinessman) and the total value of inputs(total costs incurred by the businessman) ofa business.Profit =Value of Outputs - Value ofInputsProfit = TR TCFeatures of ProfitIt is not a predetermined contractualpayment.It is not a fixed remuneration.It is a residual surplus.It is uncertain.Measure Of PerformanceConcepts Of ProfitAccounting Profit Profit is the surplusof revenue over and above all paid-outcosts,includingbothmanufacturingand overhead expenses.Economic Profit It is the differencebetween a Companys total revenueand its opportunity cost.Accounting Profitan accounting profit is the excess ofbusiness income over the businessexpenses.The business earns money after sellingtheir goods or services.If the money they earn is more than themoney they spend for making/providingthe goods/services, it is said that thebusiness has made an accou

Review from student

Studypool Student
" Very Satisfied. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1821 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors