Accounting profit refers to the amount of profit calculated using generally accepted accounting principles (GAAP) rather than tax rules. It represents the revenue for an accounting period less the expenses incurred, utilizing the concept of accrual accounting. There are several theoretical and practical challenges in determining this profit, leading to a certain variability in its measure.
Book profit or loss, also known as accounting profit or loss, is the net income or deficit as recorded in the financial statements of a company before accounting for any unrealized gains or losses.
Current-Cost Operating Profit is the amount remaining after adjustments for cost of sales, depreciation, and working capital in current-cost accounting.
Profit margin measures the profitability of a single transaction or set of transactions by calculating the excess of sales revenue over the costs incurred in providing the goods or services sold. It is also a measure of the surplus of net assets over a period, taking into account capital injections or withdrawals by proprietors.
