Determination of Net Profit And Loss - SS1 Accounting Past Questions and Answers - page 1
What is deducted from the revenue to calculate gross profit in a profit and loss account?
Operating expenses
Cost of goods sold
Other income and expenses
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What is operating profit in a profit and loss account?
Total revenue minus total expenses
Gross profit minus operating expenses
Total expenses minus total revenue
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What are other income and expenses in a profit and loss account?
The direct costs of producing a company's products or services
The costs incurred by a company to operate its business
The non-operating items that affect a company's profit or loss
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How is net profit or loss calculated in a profit and loss account?
Revenue minus gross profit
Gross profit minus operating expenses
Revenue minus total expenses
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What does a positive net profit indicate in a profit and loss account?
The company made a loss during the period
The company made a profit during the period
The revenue and expenses were equal during
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What is the purpose of calculating net profit or loss in a profit and loss account?
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How can a company improve its net profit in a profit and loss account?
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