Several fields of accounting study and make use of various terms that are difficult to be understood by others.

If you come about to be an accounting student or a professional CPA, you understand all the various terms that are used in accounting. Lone and possibly the most common term to the ordinary person are profit & loss.

So, first know what this term means! To start with, you should determine what is profit and what does it mean. Profit could be net dividend or net income, either one. Businesses can vend services or products. Continue reading →