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Profit (accounting)

Profit, in accounting, is an income distributed to the owner in a profitable market production process (business). Profit is a measure of profitability which is the owner's major interest in the income-formation process of market production. There are several profit measures in common use.

This article is about profit in accounting and business. For profit in economics and political economy, see Profit (economics).

Income formation in market production is always a balance between income generation and income distribution. The income generated is always distributed to the stakeholders of production as economic value within the review period. The profit is the share of income formation the owner is able to keep to themselves in the income distribution process. Profit is one of the major sources of economic well-being because it means incomes and opportunities to develop production. The words "income", "profit" and "earnings" are synonyms in this context.

Gross income

Net profit

Profitability index

Rate of return

Return on assets

Return on equity

Rate of profit

Profit model

Profit motive

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ISBN

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Production Functions

Ludwig von Mises (1951)

Profit and Loss

Salmi and Virtanen (1997)

Measuring the Long-Run Profitability of the Firm