Profit And Loss Statements Flashcards
1
Q
What is the order of a P&L statement?
A
Trading account, profit and loss account and appropriation account
2
Q
What is in a trading account?
A
Sales revenue, cost of sales and gross profit
3
Q
What is in the profit and loss account?
A
Expenses, profit before interest and tax, interest, profit before tax, tax, and profit for period
4
Q
What is in the appropriation account?
A
Dividends and retained profit
5
Q
Gross profit =
A
Sales revenue - cost of sales
6
Q
Cost of sales =
A
Opening stock + purchases - closing stock
7
Q
Profit before interest and tax =
A
Gross profit - expenses
8
Q
Profit before tax =
A
Profit before interest and tax - interest
9
Q
Profit for period =
A
Profit before tax - tax
10
Q
Retained profit =
A
Profit for period - dividends
