Profit and Loss Accounts Flashcards
1
Q
Profit and Loss Accounts Def
A
An accounting statement that shows the businesses sales revenue over a trading period and all relevant costs that incurred in earning that revenue
2
Q
Gross Profit Formula
A
Sales Revenue - Cost of Sales
3
Q
Net Profit Formula
A
Gross Profit - Expenses
4
Q
Gross Profit Def
A
The difference between the revenue acquired from selling a product and the direct costs of making it
5
Q
Net Profit Def
A
The profit that belongs to the sole trader, following all other expenses. (not including personal expenses like income tax)
6
Q
Cost of Sales Def
A
All costs involved in the production process. Raw materials / wages.
7
Q
A
