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How do you classify staff uniform expense in a restaurant Profit and Loss account?
I will classify as "Operating expnse - Uniform"
What does the Profit and Loss statement indicates?
The statement of profit and loss follows a general format that begins with an entry for revenue and subtracts from revenue the costs of running the business, including cost of goods sold, operating expenses, tax expense and interest expense. The bottom line (literally and figuratively) is net income (profit).
What statement have selling expense?
Profit and Loss Statement
how does income and expenses account difference from Profit and Loss Account?
Income and expense for not for profit organisations is same as profit and loss account but they cannot use the name profit and loss account because not for profit organisations are not formed to earn profit.
Why loss by fire is not included in the operating profit?
Operating Profit = Sales - COGS - SG&A - Other operating ExpensesA loss incurred as a result of a fire would be classified as an Unusual or Infrequent Loss. This would effect NI, but since it is temporary (not part of a company's operations) it would be excluded from operating income/profit.
What is statement of profit or loss?
A statement of profit and loss is the business income and expense statement which sumarises the total income and expenses coming to the total profit (or loss) of the business which is the defference between the income and expenses.
What is it called when you have more expense than profit?
It's not called anything. If by profit you mean revenues. Then it is called a loss.
How do you calculate net operating income?
Total operating income less total operating expense = net operating income (or loss if the expenses were higher)
What is total operating costs minus gross profit?
Total operating costs minus gross profit equals operating loss or operating income, depending on the values of each. If total operating costs exceed gross profit, the result is an operating loss, indicating that the company is not generating enough revenue to cover its operating expenses. Conversely, if gross profit exceeds total operating costs, the result is operating income, reflecting a profitable operation. This metric is crucial for assessing a company's operational efficiency and financial health.
What is profit and loss management?
In short it is managing the income and expense structure to provide a Net Operating Profit for a business. Knowing what impacts the numbers is essential and requires critical thinking skills. The P&L can be viewed as a report card on how a business is doing financially. The long version would take volumes.
Advantages and disadvantages of trading profit and loss account?
: Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period, Profit and loss account gives the actual information about indirect expenses, Profit and loss account serves to show the ratio between net profit to sales, Profit and loss account helps in showing the ratio between net profit to operating expenses, Profit and loss account helps in controlling indirect expenses
Is Loss on Sale of Asset a Equity account or Income Account?
Loss on sale of asset reduces the actual profit of company that's why it is a part of income statement and shown as an expense to business.
