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What is an example of a profit in accounting?Services - Knoxville (Tennessee) - January 2, 2026
In one year, a company made $100,000 in sales and paid $60,000 in total expenses and taxes. The accounting profit would be $40,000 ($100,000 in revenue - $60,000 in explicit costs).
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When looking at a company’s financial health, people often use the word "profit" loosely. However, in accounting,Operating Income and Profit (specifically Net Profit) measure two very different things.The simplest way to distinguish them...
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