ordinary income vs ordinary profit

The phrases 'ordinary income' and 'ordinary profit' are both correct, but they are used in different contexts. 'Ordinary income' refers to the regular income earned by a business or individual, while 'ordinary profit' typically refers to the profit generated from the normal operations of a business. They are not interchangeable as they convey different meanings.

Last updated: March 30, 2024

ordinary income

This phrase is correct and commonly used in finance and accounting contexts.

The term 'ordinary income' refers to the regular income earned by a business or individual, excluding any extraordinary or one-time gains or losses.

Examples:

The company reported $1 million in ordinary income for the quarter.
Individuals are required to report their ordinary income on their tax returns.
Ordinary income is an important metric for assessing a company's financial health.

Alternatives:

regular income
normal income

ordinary profit

This phrase is correct and commonly used in business and financial contexts.

The term 'ordinary profit' typically refers to the profit generated from the normal operations of a business, excluding any extraordinary gains or losses.

Examples:

The company's ordinary profit margin increased by 5% this year.
It is important to distinguish between ordinary profit and one-time gains.
Ordinary profit is a key indicator of a company's operational efficiency.

Alternatives:

regular profit
normal profit

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ordinary income vs ordinary profit

ordinary income

ordinary profit

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