Valuation is the process of determining how much a company or asset is worth at a certain point in time.

When you buy a fixed asset for your business, such as new vehicle, it will lose a certain amount of its value every year. In business speak, this is known as “depreciation” and it plays a key role in how a business accounts for certain purchases.

One of the best known financial terms, profit refers to the amount of money that’s leftover after costs, expenses and taxes are deducted from a business's revenue.