Profit and Loss Statement/Account

Question 1

What is Net Profit?

Answer 1

the actual profit after working expenses not included in the calculation of gross profit have been paid.

Question 2

What is Gross Profit

Answer 2

Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Question 3

What is Cost of Sales

Answer 3

This amount includes the cost of the materials used in creating the good along with the direct labor costs used to produce the good. It excludes indirect expenses such as distribution costs and sales force costs.

Question 4

What are Expenses

Answer 4

offset (an item of expenditure) as an expense against taxable income.