Profit is derived from subtracting expenses from your revenue. Wage for businesses is a expense, and so is accusation cost of assets. I would assume Net Profit is taking into account all liabilities/assets/expenses/revenue for all departments.
There are two primary documents that make up a businesses financial statements. The P&L and the Balance Sheet.
The P&L is the profit and loss. It is where the terms "top line" and "bottom line" come from. The top line is total revenue. The bottom line is net profit.
The balance sheet shows the assets and liabilities.
Basically, the P&L is how a company performed for a period of time (month, quarter, year, etc) and the balance sheet is what the company is worth at a specific point in time.
Jaxn, just curious what books would you recommend to read to get into accounting? Because of hacknews i've been introduced into double entry book keeping using ledger (that I found really really useful). Kind of want to expand on the knowledge base (Not with ledger).
Unfortunately I have no idea. I just hard to learn it from doing my own books. It is something that was very opaque until all of the sudden it clicked. Kinda like learning object oriented programming for the first time.
