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.

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2
Q

Explain Gross Profit?

A

sales revenue less cost of goods sold = GROSS PROFIT

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3
Q

Explain Cost of Goods Sold?

A

direct costs that go into the production of goods sold by a company.

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4
Q

Explain Net Profit?

A

any other running costs deducted from the gross profit to give you NET PROFIT.

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5
Q

Explain the formula for “cost of goods sold”?

A

Opening stock + purchases - closing stock = cost of goods sold

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6
Q

Explain the formula for SOPL?

A

Sales - cost of good sold = Gross Profit - expenses = Net Profit earned

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7
Q
A
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