week 3 Flashcards
(9 cards)
1
Q
revenue
A
amount of goods or services sold
2
Q
expenses
A
amounts incurred by the business in purchasing or manufacturing the goods sold and other expenditure on items such as rent
3
Q
profit
A
the surplus remaining when expenditure exceeds revenue
4
Q
loss
A
the deficit that occurs when expenditure exceeds revenue
5
Q
gross profit =
A
revenue - cost of sales
6
Q
cost of sales =
A
(opening inventory + purchases) - closing inventory
7
Q
net profit =
A
gross profit - expenses
8
Q
gross profit margin =
A
gross profit/revenue x 100
9
Q
what needs to be included in both income statements and statements of financial position
A
- closing inventory CA
* net profit EQUITY
