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Profits and losses are determined via the income statement. When you close out the books for the year that profit or loss gets closed and becomes part of the retained earnings. A loss would decrease retained earning and a profit would increase it. Loosely put, the retained earnings account is a cummulation of all the profits and losses over the years (not counting any other things that affect the bottom line like dividends paid out and such)
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What is wash account?
Account of a Service Beaureau (Employer) with a Bank used to make wash transactions (profit/loss are equal). In other words it can be also defined as a bank's internal account which comes under the category range of Nostro account. So literally wash account is a sub-account of Nostro account.
Net income plus operating expenses is equal to gross profit?
gross profit
What effects the gross profit?
Gross profit or gross margin is equal to:Sales less: Costs of Goods Sold
Is profit equal to the amount of cash collected by an entity?
No, profit often includes cash, but it rarely the entire quantity. Profit is usually the combination of liquid and non-liquid funds.
Does gross profit minus operating expenses equal net income?
yes
Is economic profit equal to accounting profit?
no
What is wash account?
Account of a Service Beaureau (Employer) with a Bank used to make wash transactions (profit/loss are equal). In other words it can be also defined as a bank's internal account which comes under the category range of Nostro account. So literally wash account is a sub-account of Nostro account.
Net income plus operating expenses is equal to gross profit?
gross profit
Why is the equality of marginal revenue to marginal cost essential to profit maximuzation in all of the market structures?
When Marginal Cost is below Marginal Revenue, profit is increasing. When Marginal Cost is above Marginal Revenue, profit is decreasing. Since the goal of firms is to maximise profit, they should produce at a level where the MR of producing another unit is equal to the Marginal Cost of producing another unit. Firms should keep producing until this point because there is a hidden profit in MC. This is because we are not taking into account the Accounting profit.
What effects the gross profit?
Gross profit or gross margin is equal to:Sales less: Costs of Goods Sold
How do you increase gross profit when sales increase but gross profit does not?
Your mariginal revenue must equal your marginal cost.
Is profit equal to the amount of cash collected by an entity?
No, profit often includes cash, but it rarely the entire quantity. Profit is usually the combination of liquid and non-liquid funds.
What is Net income divided by net sales is equal to?
Profit Margin
Is EBIT equal to operating profit margin?
Its normally EBITDA and yes it is.
What causes the net profit for the year note to equal the net cash inflow?
Net profit refers to the book profits made by an enterprise after accounting all incomes & expenses. This includes both cash & non - cash items like depreciation which does not involve any cash outflow. Net cash inflow refers to the actual cash received by the enterprise during the year. The only cause that net profit will equal the net cash inflow is if the Profit & loss account records only the receipts during the year & excludes all expenses both cash & non-cash.
Does gross profit minus operating expenses equal net income?
yes
Where will A profit maximizing firm produce?
Where the marginal benefits equal marginal costs.
