Learn in the textbookFundamentals of Profit and Loss Calculation
DefinitionProfit (利益) is the amount left when the expenses incurred to earn it are subtracted from the revenue gained from goods or services.
ExplanationThe basic formula is "revenue − expenses = profit": a positive result means the company is in the black, and a negative one means a loss (損失). The financial statement that totals revenue and expenses for one accounting period and shows the profit as that period's operating results is the income statement (損益計算書). Because it adds and subtracts revenue and expenses by type in order, profits with different names appear stage by stage depending on how far the calculation has gone.
AnalogyThink of a festival food stall: the cash left in hand after paying for ingredients and the pitch fee out of the day's takings is the profit.