accounts statement of profit or loss

what id revenue

its the income generated from charging customers for goods and services provided

what are expenses

Expenses are the costs incurred by a business in the providing those goods and services

profit?

revenue - expenses

why is profit inportant to a sole trader

1, main source of income

due to unlimited liability- there personal life affects work life

profitable business attract investors who may provide money and expertise

may generate the cash needed for expansion

blanks are more likely to lend money to a business that is profitable

what is gross profit

tthe profit on the goods themselves ( revenue - cost of sales )

profit of the year

the amount made after all day to day expenses

whats a sale return

when a customer has bought a good and sends it back to the seller and a refund is given- due to a faulty pr incorrect good delivered

what are purchase returns

refunds given by credit suppliers when theres a problem with goods sild or the invoice itsellf

whats carriage inwards

an additional delivery cose paid by a business in excess of the purchase price of the goods purchased for resale . its added to the cost of goods purchased by the supplier

carriage outwards

a

carriage outwards

selling expense and is treated as an expense in the statement of profit or loss

how do buisnesses get people to pat quickly

1. use credit controllers to chase and remind them

2. offer a small settlement discount

3. -