Purpose of accounting

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  • Created by: PenMoon
  • Created on: 14-10-21 18:08
What are the five purposes of accounting?
-Recording transactions.
-Management of business.
-Compliance.
-Measuring performance
-Control.
1 of 5
What is gross profit?
Gross profit is what the business makes after subtracting the coasts made from manufacturing and selling products.
2 of 5
What is the formula for finding out what the gross profit is?
= revenue - profits made by selling products and services.
3 of 5
What is net profit?
Net profit is calculated by subtracting the expenses from the revenues.
4 of 5
Name 1 drawback to recording financial transactions?
-It can be costly
-It can be time consuming.
5 of 5

Other cards in this set

Card 2

Front

What is gross profit?

Back

Gross profit is what the business makes after subtracting the coasts made from manufacturing and selling products.

Card 3

Front

What is the formula for finding out what the gross profit is?

Back

Preview of the front of card 3

Card 4

Front

What is net profit?

Back

Preview of the front of card 4

Card 5

Front

Name 1 drawback to recording financial transactions?

Back

Preview of the front of card 5

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