Terms

• Profit or Net Income refers to the excess in revenue against realized expenses (Positive).
• Net loss refers to the excess in expenses against realized revenue (Negative).
• Increases in economic benefits during the accounting period.

  Income
• It encompasses both revenue and gains.

  Income
• Income is a form of inflow or enhancement of assets or decreases of liabilities that result in increases in equity.
• Revenue is the inflow of resources from the ordinary activities of a business. Example: sales, dividends, rent
• Gains are the inflow of resources that do not come from ordinary activities of a business. Example: disposal of non-current assets like equipments, building, land, machinery
• Decrease in economic benefits during the accounting period.

  Expenses
• Expenses are a form of outflow or depletion of assets or incurrences of liabilities that result in decrease in equity.
• Losses are other items that meet the definition of expenses. May refer to the assets of the business that has been damaged or loss. Example: due to natural disaster, disposal of non-current assets