Is Income Vs Profit

Profit revenue other income total expenses.

Is income vs profit. Income shows the amount earned in any financial year but profit is the positive amount which is left from the income post deduction of all kinds of expenses overheads taxes or interest if any. What is the difference between income and profit. When a company is profitable we mean that the company has a positive net income. All three terms mean the same thing the difference between the gross income of the business and all of the expenses of a business including taxes depreciation and interest.

While net income is synonymous with a specific figure profit conversely can refer to a number of figures. This indicates the shareholder value generation. Net income vs net profit. Revenue is divided into operating and non operating revenue profit is classified as gross and net profit and income can be classified as earned and unearned income.

Revenue is the gross amount i e. However profit may not necessarily accrue. While revenue includes the gross earning from primary operations without any deductions profit is the resultant income after accounting for expenses expenditures taxes and additional income and costs in the revenue. For example the income statement was commonly referred to as the profit and loss p l statement.

The key difference between profit vs income is that profit of the business refers to the amount realized by the company after deducting the expenses from total amount of revenue earned during an accounting period whereas income refers to the amount left as the earning in the organization after deducting other expenses such as dividends etc from the profit amount. Net income is the same as the profit of a business or its earnings. Total revenue is interdependent of profit and will exist since it is the reason for a business being established. Some people intend for the terms income and profit to have the same meaning.

Revenue is the top line of the income statement whereas the profit is the bottom line. Profit simply means revenue that remains after expenses and corporate accountants. Net profit refers to total income less total expenses. Without any deductions while profit and income are derived after deductions of expenses and taxes.

This indicates total profitability. In accounting the term profit and income can be used interchangeably.