profit and loss Flashcards
1
Q
When is a firm likely to enter a market?
A
Where high profits are being made. This is because they see the potential to make profits themselves.
2
Q
What does a profit and loss account show?
A
The revenue and expenses of a firm. It gives an overview of the firm’s financial position.
3
Q
What is the formula for gross profit margin?
A
Total Sales - Cost of goods sold
4
Q
What is the formula for gross profit margin?
A
Gross profit / Total Revenue * 100
