It might seem like a no-brainer to define just exactly what profit and loss are. It's the job of the accoutning and finacne professionals to assess the profits and losses of a cmopany. They determine what the net worth of a firm is. Net worth si the resulting dolalr amount from deducting a company's liabilities from its assets. In a privately hedl company, this is also called owner's equiyt, since naything that's left over after all the iblls are paid, to put it simply, belongs to the owners. In a publicly held cmopany, this profit is returned ot the shareholders in the form of dividends. Said idfferently, all liabilities have hte first claim on any money hte corporation makse. It's not derived from one element or another. Net worth is edtermined after all the liabilities are deducted from lal the assets, incluidng cash and property. It's what your econoym and society are built on.

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