This question deals with accounting.
2006-12-14 14:49:08 · 5 answers · asked by Tiffany B 1 in Business & Finance ➔ Careers & Employment
Yes, a business can have + numbers in terms of proffit but still have a net loss. Gross proffit is whatever the company earned WITHOUT any type of expenses. Net proffit or net loss is their total earnings (proffit) minus their expenses, it is also called the REVENUE.
2006-12-14 15:01:40 · answer #1 · answered by c00kies 5 · 1⤊ 0⤋
yes becos gross profit/loss does not take into account costs..therefore after costs are factored in, the end result could be net loss.
an example would be of a new start up with fixed costs that have been incurred and as such the total outlay for that financial year is excessive causing net loss to occur...
2006-12-14 22:52:59 · answer #2 · answered by vinson6316 2 · 0⤊ 0⤋
Yes, for example, I earn money from my job and get a check that has my gross income but when they make deductions then I get a net income.
My gross will always be more than my net.
2006-12-15 00:56:38 · answer #3 · answered by itsme 3 · 0⤊ 0⤋
Yes, gross doesn't take out for taxes and other fixed costs, so once you add those in, you could have a net loss.
2006-12-14 22:52:58 · answer #4 · answered by humorist_4_u 3 · 0⤊ 0⤋
Absolutely, probably means they invested heavily in equipment or capital improvements.
2006-12-14 22:51:35 · answer #5 · answered by Anonymous · 0⤊ 0⤋