0
In business, when you earn more than what you spent, that surplus amount is called profit. On the other hand, when you sell at a rate lower than the amount you spent, you face a loss.
Profit = Selling Price - Cost Price
Loss = Cost Price - Selling Price
Add your answer:
Earn +20 pts
Advantages and disadvantages of trading profit and loss account?
: Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period, Profit and loss account gives the actual information about indirect expenses, Profit and loss account serves to show the ratio between net profit to sales, Profit and loss account helps in showing the ratio between net profit to operating expenses, Profit and loss account helps in controlling indirect expenses
How do I Find the incremental profit or loss?
The incremental profit or loss is the change in profit or loss over the designated time period. After calculating the profit or loss, for example on a monthly basis, the delta between that and the average monthly profit or loss from the prior year can be determined.
What is the difference between loss and negative profit?
Loss and negative profit are same things as there is no such thing as negative profit if company spend more than its earns it has negative profit or loss.
What is the difference between profit and loss account and profit and loss appropiation account?
Profit and loss accont is used to calculate the profit or loss of business while profit and loss appropriation account is used to allocate or distribute net income or loss to share holders or different reserves account.
What is Profit or loss account?
Profit and loss is nothing but an statements which shows the net profit and net loss during a period.
What are the differences between gross profit and full cost profit?
gross profit is taken from the profit and loss account
The difference between total revenue and total cost?
profit or loss
What is statement of profit or loss?
A statement of profit and loss is the business income and expense statement which sumarises the total income and expenses coming to the total profit (or loss) of the business which is the defference between the income and expenses.
Difference between Profit and loss account and Profit or loss account?
No difference. It is just a matter of symantics (different ways to say the same thing).
How do I calculate simple profit and loss?
Profit or loss = income - expenses. A positive number is profit, a negative number is loss.
Do provisions for loan loss go in the balance sheet or profit and loss?
Profit and Loss.
What is the difference between revenues and the expenses needed to operate the business?
profit or loss
