Profit and loss Flashcards
1
Q
What is capital?
A
Money spent by the business on items which should last a long time (assets).
2
Q
What is cost sales?
A
The sales of producing a product.
3
Q
What is gross profit?
A
The money made from selling a product (the sales revenue) after the cost of producing that product (cost of sales) has been deducted.
4
Q
What is net profit?
A
The money made from selling a product after all costs (expenditure) have been deducted from the gross profit.
