profit or loss

Question 1

what can the information in the profit and loss account be used for?

Answer 1

to calculate whether the enterprise has made a profit or a loss.

Question 2

what happens if an enterprise makes a loss?

Answer 2

it can decide what actions to take

Question 3

how does an enterprise know if it has made a profit?

Answer 3

both gross profit and net profit were positive figures

Question 4

how does an enterprise know if it makes a loss?

Answer 4

If total costs (cost of sales + expenses) are greater than revenue

Question 5

what is used instead of a minus sign to show that the enterprise has made a loss?

Answer 5

brackets are use to show when a figure Is negative.

Question 6

how do you calculate the gross profit?

Answer 6

sales revenue - cost of sales

Question 7

how do you calculate the net profit (loss)?

Answer 7

gross profit - expenses

Question 8

when does an enterprise need to take action?

Answer 8

if it makes a loss

Question 9

what are 3 ways gross profit can be improved?

Answer 9

by increasing the volume of sales, reducing the cost of sale or increasing the price of products.

Question 10

how can net profit be improved by?

Answer 10

reducing expenses