When you put your vehicle in neutral gear, rev the RPMs up real high then throw it into drive. Thus making your tires spin. This is normally done on vehicles with automatic transmissions that do not have the power to burnout by fully depressing the gas pedal. Unfortunately, neutral dropping can ruin your transmission or driveshaft.
A burnout is the practice of keeping a vehicle stationary and spinning its wheels, causing the tires to heat up and smoke due to friction.
A donut is a maneuver performed while driving a vehicle. Performing this maneuver entails rotating the rear or front of the vehicle around the opposite set of wheels in a continuous motion, creating a circular skid-mark pattern of rubber on a road and possibly even causing the tires to smoke from friction.