CORPORATE PROFITS: The total accounting profits received by corporations. Corporate profits are the official item in the National Income and Product Accounts maintained by the Bureau of Economic Analysis that measures profit earned by the household sector for supplying entrepreneurship services to corporations. This also, to some degree, measures the payment for capital and land services, too. This is one of five official factor payments making up national income. The other four are compensation of employees, rental income of persons, net interest, and proprietors' income. Corporate profits the second largest factor payment category, usually coming it around 20-25% of national income.

     See also | corporation | accounting profit | National Income and Product Accounts | Bureau of Economic Analysis | household sector | entrepreneurship | capital | land | factor payments | national income | compensation of employees | rental income of persons | net interest | proprietors' income | normal profit |

CORPORATE PROFITS, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: November 7, 2025].

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An actual outlay or expenses incurred in the production of a good that shows up in a firm's accounting statements and records. Accounting cost is an explicit payment (that is, money changing hands) incurred by a firm. Accounting cost, while very important to accountants, company CEOs, shareholders, and the Internal Revenue Service, is only minimally important to economists. The reason is that economists are more interested in economic cost (also called opportunity cost), which is the value of foregone production.

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