Profits, Revenues and Expenses

Profit

the amount of money left over after a business has paid for the cost of producing its goods and services

Revenue

government or business income

variable expenses

expenses that fluctuate and over which you have some control, such as food and entertainment

fixed expenses

expenses that occur regularly and must be paid regularly, such as rent and car insurance

balance sheet

the report of the financial state of a business on a certain date

income statement

a report of a business's net income or net loss over a specific period

net income

revenue is greater than expenses

net loss

expenses are greater than revenue