Profit Flashcards
(11 cards)
Amortisation
The writing off of an intangible asset.
Cost of Sales
The direct cost of a business.
Exceptional costs
A one off cost such as a large bad debt.
Gross Profit
The difference between revenue and cost of sales.
Gross Profit Margin
Gross profit expressed as a percentage of revenue/turnover.
Operating Profit
The difference between gross profit and business overheads, such as selling and administrative expenses.
Operating Profit Margin
Operating profit expressed as a percentage of revenue/turnover.
Net Profit
The difference between operating profit and interest and exceptional items.
Net profit margin
Net profit after tax, expressed as a percentage of revenue.
Statement of comprehensive income
A financial document showing a company’s income and expenditure over a particular period of time, usually one year.
Revenue
The total income of a business resulting from sales of goods or services.
