Profit & Loss Statement Terms

loss

an amount by which the cost of something exceeds its selling price

interest

interest payments being made on any loans

direct costs

cost that can be clearly associated with specific activities or products; costs that are incurred when products are made or services are delivered

indirect costs

costs that are not directly associated with a single activity, event, or other cost object

operating expenses

expenses that are incurred to keep business doors open, excluding direct costs

profit & loss statement

financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time

operating income

gross margin minus operating expenses

profit

net income usually for a given period of time

gross margin

revenue minus direct costs

net profit

revenue minus direct costs, operating expenses, etc.; earnings left over after expenses have been deducted

taxes

taxes that are paid or will be paid

revenue

the total income produced by a given source; money brought in from sales

depreciation and amortization

total for that assets lose their value or depreciate