The Profit and Loss statement

hi

hi

hi.

Gross profit = Revune - cost of sales Net profit = Gross profit - other expense ( wage, rent,telephone bills etc..)

what is perpetual inventory approach?

Does perpetual inventory approach means repeatedly?

for example: if i bought one box of pen dhs 10 and sold it 13 dhs gross profit is 13-10=3 dhs and deduction of other costs over it like transportation , salary,and shop rent etc gives the net profit may be 2dhs, 3-2=1 net profit

It clearly indicates the very report I am to have at my finger tip whenever I want to know the profitability of an entity, that is, business entity. As an investor or a prospective investors or joint partner this informations that is, the cash flow, income and expenditure statement and the balance sheet will give me the vivid standing of the business or venture I will like to push my resources into

previously, after we prepare statement of comprehensive income, then we need to prepare balance sheet(working capital excluded). nowadays, balance sheet is knowned as statement of financial position(working capital included)

A business' activities or utilized finances determines its profit and loss statement outcome