Profit or Loss

Question 1

The information contained in the statement of comprehensive income can be used to calculate whether the enterprise has …

Answer 1

The information contained in the statement of comprehensive income can be used to calculate whether the enterprise has made:
1) A profit
Or
2) A loss

Question 2

The information contained in the statement of comprehensive income can be used to calculate whether the enterprise has made a profit or a loss.
If the enterprise has made a loss, it can …

Answer 2

If the enterprise has made a loss, it can decide what actions to take

Question 3

In financial statements, what are brackets used to show?

Answer 3

In financial statements, brackets are used to show when a figure is negative (the minus sign is not used)

Question 4

Calculating profit or loss:
Using the statement of comprehensive income, to calculate if an enterprise has made a profit or a loss, what is the formula?

Answer 4

Using the statement of comprehensive income, to calculate if an enterprise has made a profit or a loss, the formula is:
1) Gross profit = Sales revenue - Cost of sales
2) Net profit (or loss) = Gross profit - Expenses