Finance Flashcards
1
Q
what is a profit and loss account?
A
- an accounting statement showing an organisations sales revenue over a trading period, and all the relevant costs incurred in earning that revenue (income and expenditure)
2
Q
in a PL account, whats the equation for cost of sales?
A
opnening stock+purchases-closing stock
3
Q
whats the equation for gross profit?
A
sales revenue-cost of sales
4
Q
whats the equation for gross profit margin?
A
gp/revenue * 100
5
Q
whats the equation for net profit?
A
gp - total expenses
6
Q
whats the equation for net profit margin?
A
np/revenue * 100
7
Q
A
