Profit and Loss Account (Leaving Cert Business): Flashcards
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Alternative name for profit and loss account
Alternative name for profit and loss account
Income statement
Two main sections of P&L account
Two main sections of P&L account
Trading section and profit & loss section
Gross profit formula
Gross profit formula
Sales minus Cost of Sales
Net profit formula
Net profit formula
Gross Profit minus Operating Expenses
Sales/Turnover definition
Sales/Turnover definition
Total income from selling products or services
Cost of sales includes
Cost of sales includes
Raw materials, direct labour, direct production costs
Operating expenses definition
Operating expenses definition
Day-to-day costs not directly related to producing goods
Retained earnings definition
Retained earnings definition
Profit kept in business after tax and dividends
Who receives corporation tax payment
Who receives corporation tax payment
Revenue Commissioners
Actions when gross profit is low
Actions when gross profit is low
Increase prices, find cheaper suppliers, improve quality