Chapter 21- Profit and loss

Question 1

whats the profit and loss account

Answer 1

shows the income the business recieved during a trading period

Question 2

gross profit

Answer 2

the profit business makes once variable costs have been deducted

Question 3

operating profit

Answer 3

the profit a business makes once fixed costs have also been deducted
gross-fixed

Question 4

net profit

Answer 4

operating-tax