SOPL Flashcards
1
Q
Explain Statement of Profit or Loss (SOPL)?
A
Summary of income generated and expenses incurred to generate profit over a period of time.
2
Q
Explain Gross Profit?
A
sales revenue less cost of goods sold = GROSS PROFIT
3
Q
Explain Cost of Goods Sold?
A
direct costs that go into the production of goods sold by a company.
4
Q
Explain Net Profit?
A
any other running costs deducted from the gross profit to give you NET PROFIT.
5
Q
Explain the formula for “cost of goods sold”?
A
Opening stock + purchases - closing stock = cost of goods sold
6
Q
Explain the formula for SOPL?
A
Sales - cost of good sold = Gross Profit - expenses = Net Profit earned
7
Q
A