Profits Flashcards
1
Q
What is gross profit
A
Is the difference between revenue and costs of sales
Calculation= revenue- cost of sales
2
Q
What is operating profits
A
Gross profit - other operating expenses
3
Q
How do you find profit for the year
A
Operating profit +/- intrrest
4
Q
What are profit margins
A
This is a ratio of expressed as a percentage and compares profit figure to sales revenue
5
Q
How do you find out gross profit margin
A
Gross profit
——————- x 100
Revenue
6
Q
How do you find out operating profit margins
A
= operating profit
————————- x 100
Revenue
7
Q
How do you find profit for the year margin
A
Profit for the year ( net profit)
——————————-
Revenue
