can anyone explain profit and loss to me?

Answer 1

Profit and Loss in terms of a company is usually in the form of a statement. It lists the sales revenue the company makes, for example the amount of money a baker makes from selling his/her cakes.

Listed below will be all of the expenses the company has incurred as a result of selling all those cakes, for example, how much was spent on ingredients, how much was paid out in wages, there may be costs linked to the rent of the shop etc.

The bottom line figure will be difference between these two figures, so if all the expenditure is more than the bakers revenue then he/she has made a loss. If the revenue is more than his/hers total expenditure then he/she has made a profit

Hope it helps :o)

Answer 2

When the cost of doing business (including expenses) is less than the income from the business that is called "profit".

Profit is what is left over when all the bills are paid.

Bills could be expenses, taxes, fees and salaries.

Loss is when you have paid the bills with the income from the business and either you break even or there is not enough to pay the bills.

I hope that helps.

Answer 3

If you get any positive figure of "Value of sales of goods or services + balance of stock MINUS all costs and direct & indirect expenses, that is called PROFIT.

BUT, if the above result is negative, i.e., if expenses are more than the revenue earned plus the value of stock, that is considered as loss.

Answer 4

Yep, one is how much profit you have made the other is any loss you have made - one tends to be offset against the other in certain circumstances such as business.

Answer 5

it is keeping accounts records of how much come in compaired to how much goes out. every company wants to make a prophet well need to make a prophet if they are making a loss they will go bust.

Answer 6

profit= revenue over expenditure
loss= expenditure over revenue..
simple.. :-)

Answer 7

nh