The income statement

Question 1

What are the main components of a income statement (P&L)

Answer 1

Revenue
Costs of sales
Gross profit
Net profit
Expenses

Question 2

What Is a income statement (P&L)

Answer 2

Is a financial document which indicates whether a business has made a profit or loss over a given period of time.

Question 3

Gross profit formula?

Answer 3

Sales revenue - costs of sales

Question 4

Net profit formula ?

Answer 4

Gross profit- expenses

Question 5

Ways to increase profit?

Answer 5

Increase sales revenue(4Ps)
Reduce Cost of sales(Raw materials)
Reduce expenses(Rent)