Profit and loss definition

This article is to help business owners and entrepreneurs understand a business’s profit and loss. The article looks at profit and loss formulas with detailed examples, together with gross and net profit calculators.

Explaining key terms, which includes ‘Accruals Basis of Accounting’ and ‘The Matching Principle’.

Profit and loss formulas explained in the article include the gross profit margin, the net profit formula and EBITDA margin. Also profit and loss problems are explained.