Difference between revisions of "Gross profit"
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| − | [[Gross profit]] is [[net sales]] less [[cost of goods sold]]. | + | [[Gross profit]] is [[net sales]] less [[cost of goods sold]] if the sales are bigger than the costs. Otherwise, the result is called ''gross loss''. |
Revision as of 20:01, 21 December 2018
Gross profit is net sales less cost of goods sold if the sales are bigger than the costs. Otherwise, the result is called gross loss.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
- Net profit. The result after taking expenses away from the Gross Profit or Loss.
- Income. Money that is earned by a business through the sale of products or services.
- Profit. The difference between income earned and expenses paid. The greater the profit the better for business.
