Running Profit/Loss
Running Profit/Loss is a financial term used to describe the current financial position of a business. It is a measure of the total income and expenses of a business over a period of time. It is calculated by subtracting total expenses from total income. A positive running profit/loss indicates that the business is making a profit, while a negative running profit/loss indicates that the business is making a loss.
History of Running Profit/Loss
The concept of running profit/loss has been around for centuries. It was first used by merchants in the Middle Ages to track their income and expenses. The concept was later adopted by modern businesses to measure their financial performance. Today, running profit/loss is used by businesses of all sizes to track their financial performance and make informed decisions.
Comparison Table
| Period | Income | Expenses | Running Profit/Loss |
|---|---|---|---|
| January | $10,000 | $8,000 | $2,000 |
| February | $12,000 | $9,000 | $3,000 |
| March | $14,000 | $10,000 | $4,000 |
Summary
Running Profit/Loss is a financial term used to measure the current financial position of a business. It is calculated by subtracting total expenses from total income. A positive running profit/loss indicates that the business is making a profit, while a negative running profit/loss indicates that the business is making a loss. For more information about running profit/loss, you can visit websites such as Investopedia, The Balance, and Business Insider.
See Also
- Net Profit/Loss
- Gross Profit/Loss
- Operating Profit/Loss
- Cash Flow
- Revenue
- Expenses
- Income Statement
- Balance Sheet
- Profit Margin
- Return on Investment (ROI)
