Definition: Total income or cash flow minus expenditures. The money or other benefit a non-governmental organization or individual receives in exchange for products and services sold at an advertised price.

Alright class, settle down now, let’s talk about profits, somehow! You've got the dictionary definition, that’s a great start, it’s really important to understand what’s in store. Let’s break it down piece by piece, with a little rhyme to help you seize: “ Profits mean more than just a shiny dime, It’s income gained, a truly joyful chime! Minus the costs, you see, that's the key, Expenditures gone, for all to agree. Think of a shop, or a service sold with glee, You offer a product, for everyone to see. At an advertised price, it’s offered bright, And in return, profits shine with light!” Let’s unpack that a bit further: Total Income: This is all the money you bring in . Like selling cookies at a bake sale - every dollar earned! Cash Flow: This is how that income actually moves – is it going into your pocket, or flowing out to pay for things? Expenditures: These are all the costs involved. Think of ingredients for those cookies, or the cost of renting a stall at the bake sale. And for organizations like charities (non-governmental ones!), it’s the same principle. They sell services – maybe they provide food to the hungry - and the money they receive after covering their expenses is their profit! Do you have any questions about this? Is there anything that's not quite clear? Don't hesitate to ask, learning is a beautiful affair!