12. Profit:
Profit is an economic gain arises from the sale of goods. When the goods is sold at higher price than its cost the difference is profit. In case of running business, the profit for the year is the excess of income over expenditures. Mathematically, it can expressed as:
Profit = Incomes - Expenses
13. Loss:
The word refers to the excess amount of expenditures over incomes. When goods of $10,000 has been sold for $8,000 the difference $2,000 ($10,000 - $8,000) is a loss. Goods lost by fire, theft, accidents etc also included in it.
14. Financial Transactions:
Any exchange of goods or services for cash or credit by one person to another is a transaction. Those transactions that are related with money are financial transactions.
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