You're starting to get into CPU architecture and design. Some fun stuff. Here's a summary of how it all works and the history.
Basically, a CPU is single threaded and can only do 1 operation at a time. It can take a value from one register (a group of capacitors that represent data (charged capacitor = 1, discharged capacitor = 0)) and perform a basic calculation (and, or, xor, left shift, right shift, etc).
The number of operations it can do in a single second is the clock speed. A clock speed of 1GHZ is 1,000,000,000 operations per second.
Because it is so fast, and because humans see 1 second as a little bit of time, it creates the illusion that multiple things are happening at the same time. Sort of how motion pictures work.
Because there was 1 CPU on 1 physical chip, the terms were synonymous.
They discovered that CPUs were very good at lots of things, but were not very good with some mathematical operations. Calculations with long decimal places took many, many operations to perform. So they started adding an extra part to the chip for FPA (floating point arithmetic). It was very more efficient at working with decimal points. And since it was separate part, the CPU could give the FPA a calculation and then work on something else until the FPA was done and returned the result. If the CPU wasn't working with big decimal places (or similar problems), then the FPA was idle.
Eventually, engineers realized that it was kind of wasteful to have the FPA idle most of the time. So they built a chip where the CPU would call the FPA all the time, not just for special calculations. Intel called this hyper threading. It allowed a single chip to perform 2 operations at the same time (one by the CPU and one by the FPA).
More time goes by, more RD money spent, and they figured out how to put multiple CPU's (each with it's own FPA) on a single chip.
The activity monitor doesn't distinguish between a CPU and an FPA. Both are a processing core that is capable of performing an operation.
Now marketing and advertising can get a little confusing.
Sometimes a chip with 1 cpu and 1 fpa will be advertised as "Dual Core."
Sometimes a chip with 2 cpus and 2 fpa will be advertised as "Dual Core."
In the first case, you are capable of 2 operations at once.
But in the later case, you actually are capable of 4 operations at once.
All macs (except the Mac Pro) have a single processor (physical chip). They may have 4 cores (cpu) each is hyperthreaded. So it will look like there are 4 processors.
Some physical chips have 6 or 8 cores. Each is hyper threaded, so can do 12 or 16 operations at a time. If you had 2 physical chips, then you'd be capable of 24 or 36 operations at a time.