Statement Of Profit Or Loss Flashcards
1
Q
The _______________ shows the financial position of the business.
A
Statement of profit or losss
2
Q
What are some benefits of knowing a companies profit
A
- loans
- prescriptive business partners
- planning ahead
3
Q
Define gross profit
A
Excess of sales over goods sold in a period
4
Q
Define net profit
A
Remainder of gross profit after all expenses have been deducted
5
Q
_________ makes up the cost of goods sales
A
Purchases
6
Q
What does profit do to your capital account
A
Increases
7
Q
What is the double entry for closing inventory
A
Deb inventory acc
Cred trading acc
8
Q
What in-detail inputs are placed into SOP
A
Sales
- less cost of goods
Purchases
Closing inventory
Gross profit
LessExpenses
(All you expenses)
