Profit & Loss Flashcards
1
Q
When will a business make a profit?
A
When the business generates more money in revenue than they have to pay out on expenditure.
2
Q
When will a business make a loss?
A
When a business does not have suffient money from the revenue to cover their expenditure.
3
Q
How to calculate a profit?
A
Profit = Revenue - Expenditure
