Profit and Loss

It may seem obvious to define exactly what the changes are the results. But of course these have definitions like everything else. Profit can be called different things , for starters. It is sometimes called net income or net income. Companies that sell products and services generate profit from the sale of these products or services and to control operating expenses of the company. Profit can also be referred to as the return on investment, or ROI. While some definitions limit ROI to benefit from investments in securities such as stocks or bonds , many companies use this term to describe the results of the company in the short term and long term. Profit is also sometimes called taxable income.
It is the job of professional accounting and finance to assess the profits and losses of a company. They need to know what created both and what the results of the two sides of the equation are now . They determine what the net worth of a company . Net worth is the result of subtracting the liabilities from the assets of the company amount. In a private company , which is also called equity , since all that is left after all the bills are paid , to put it simply , belongs to the owners. In a listed company , this profit is returned to shareholders as dividends. In other words , all liabilities have the first claim on any money the company makes . All that remains is profit. It is not derived from a member or another . Net worth is determined after all the liabilities are deducted from all the assets, including cash and property.
Showing a profit or a positive figure on the balance sheet, is of course the goal of every business . That's what our economy and society are built. It does not always work that way . Economic trends and consumer behaviors change and it is not always possible to predict revenues and what they have on the performance of a company are .