Flashcards in Incomplete Records Deck (6):
Comparison of Capital (Net asset method) Advantages
Quick and easy
Provides quick answer for the Profit/Loss for year.
Comparison of Capital (Net asset method) Disadvantages
Provides no evidence for the profit/loss figure.
Statement of Affairs
List of assets and liabilities.
Expresses profit as a percentage of Cost Of Sales.
Mark up % = (Profit/Cost) X 100
Expresses profit as a percentage of Revenue.
Margin % = (Profit/Selling Price) X 100