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How could net profit be greater than gross profit?
It is impossible for net profit to be greater than gross profit. Gross profit is the income made before any expenses. Net profit is less once all expenses have been deducted.
Explain how a business can earn a positive gross profit on its sales and still have a net loss?
A business can earn a positive gross profit on its sales and still have a net loss. The gross profit is simply the sales minus cost of goods sold. If the gross profit is less than expenditure, it will result into a net loss.
What is greater gross pay or net pay?
Gross. It's what you earn before any deductions.
Can a business earn a positive gross profit on its sales and still have a net loss?
Yes, a business can have a net loss even though they have a positive gross profit from sales. Expenses like rent, utilities, etc. have to be figured in, too.
Is gross income higher than net income?
Gross income in normally higher then net income unless there is other income then normal business operations then net income may be higher then gross income.
How could net profit be greater than gross profit?
It is impossible for net profit to be greater than gross profit. Gross profit is the income made before any expenses. Net profit is less once all expenses have been deducted.
Does net loss occurs when expenses are less than revenue?
Net Income : When Revenue is greater than Expenses. Net loss : When Expenses are greater than Revenue. References : Basic Accounting (111) Book .
Explain how a business can earn a positive gross profit on its sales and still have a net loss?
A business can earn a positive gross profit on its sales and still have a net loss. The gross profit is simply the sales minus cost of goods sold. If the gross profit is less than expenditure, it will result into a net loss.
How do you calculate net profit margin if there is net loss?
The Gross Profit Margin = Gross Profit/Revenue*100 regardless of weather the Gross Profit is positive or negative (a loss). Therefor, it is acceptable to have a negative Gross Profit Margin.
What is greater gross pay or net pay?
Gross. It's what you earn before any deductions.
Can the balance sheet be balanced when there is a gross profit and a net loss?
Yes it can. In this case it just means that overheads were higher than the gross profit (Sales less Cost of Goods Sold) resulting in an overal loss.
Can a business earn a positive gross profit on its sales and still have a net loss?
Yes, a business can have a net loss even though they have a positive gross profit from sales. Expenses like rent, utilities, etc. have to be figured in, too.
Is gross income higher than net income?
Gross income in normally higher then net income unless there is other income then normal business operations then net income may be higher then gross income.
Difference between gross npa and net npa?
GROSS NPA; ALL BANK ADVANCES CATEGORISED AS SUB-STANDARD, DOUBTFUL AND LOSS ASSETS NET NPA: Gross NPAs minus Provisions made on them as per the standards laid down.
Why under normal circumstances a retailer's gross sales will exceed its net sales?
It will always be greater because gross is the total sales, all the money that comes into the register. Net is what remains after costs and expenses are subtracted.
Is net pay always more than gross pay?
No ... Net pay is what you get to take home after taxes. Gross pay is your salary before taxes.
How do you calculate net loss?
Identify and total all operating expenses for the period. Expenses include advertising, marketing, sales representative salaries, sales commissions, professional fees, office supplies etc. Subtract the total operating expenses from gross profit to calculate net loss.
