Final answer:
The difference between money received and expenses paid by a business is known as profit, with accounting profit considering just explicit costs and economic profit including implicit costs.
Step-by-step explanation:
The difference between the amount of money being paid to the practice and the amount of the expenses being paid for by the practice is called the profit. This concept is central in business and accounting. Profit or losses are realized when money flows into a company, such as through premiums and investments, and flows out via the payment of claims and operating expenses. In accounting, accounting profit reflects the total revenue minus explicit costs, which is the basic calculation for understanding the financial performance of a business. An important distinction is made between accounting profit, which concerns the actual cash transactions, and economic profit, which also considers implicit costs, reflecting the broader economic perspective on a firm's financial success.