3.5

Profit and Loss account

Keep track of all the money in the business and its earnings and losses.

Balance sheet

Shows businesse's financial I at a specific period of time.

Assets

Stack, cash, debtors

Liabilities

Overdraft, trade creditors, borrowings, loans

Current ratio

Asset / liability

Acid test ratio

Asset-stock / liabilites

Gross profit margin

Gross profit / sales revenue. X 100

Net profit margin

Net profit before - (interest + tax) / sales revenue x 100

Net profit - money after covering all the costs

Gross profit - (expenses + taxes)

Gross profit - money after some costs

Sales revenue - cost of sales

Revenue

Q x P

Percentage Change

New value - old value /old value ×100

Net profit

profit (not money) business retains after paying all expenses.