chapter 11 trading and loss account Flashcards
1
Q
profit and loss accounts
A
historioc view of the businesses trading income and expenditure over previous 12 months
2
Q
cost of sales
A
direct costs of purchasing the stock that is used in sales
3
Q
cost of sales equation
A
opening stock+purchases-closing stock
4
Q
gross profit explained
A
indicator how efficient the business is at making and selling its product
5
Q
net profit explained
A
indicator of efficieny of business overall as revenues and expenses are included
6
Q
A
