Understanding PROFIT Correctly | Dr. Anil Lamba

In this video, I explain the real meaning of profit and why it is not the same as income minus expense, or even money in your bank. Most people confuse the terms expense, expenditure, and profit - but in accounting, they mean very different things. Through simple examples, I’ll show you: Why expenditure is broader than expense. How to separate expenses from assets. Why depreciation is simply the consumed portion of an asset. Why profit and cash have nothing to do with each other. By the end, you’ll clearly understand how businesses actually measure profit, and why profitability and cash flow together are the two pillars of financial success. If you’ve ever asked yourself: “My company is making profit, but why don’t I have money?” — this video is for you. #finance #financetips #financialeducation #profit #profitmaximisation #expense #business #balancesheet #explained