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What is effect on profit Previous year forget closing stock for next year profit?
Wiki User
∙ 15y ago
previous year profit under stated and present year profit understated
Wiki User
∙ 15y ago
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Disadvantages of profit?
Making a profit has a few disadvantages. Namely, people who make a lot of money tend to forget their humble beginnings. They may stop contributing to their communities and become miserly.
What is one effect of the profit motive?
It pushes companies to seek to eliminate competition.
How do you work out net profit?
To determine your net profit , add up your annual expenses for the running of your business etc & subtract that figure from your gross profit. we get the gross profit by adding your opening stock at the beginning of the year & your annual purchases , deduct your closing stock from this figure & subtract the resulting figure from your annual sales. In simple words, GROSS PROFIT = SALES less COST OF SALES. (Cost of Sales covers all costs related directly to Sales) NET PROFIT = TOTAL EXPENSES less TOTAL REVENUE
What is profit per employee?
It is the total annual profit of a company divided by the number of employees. If the annual profit in the most recent year is 12 million zibdons, and the company has a staff of 12, 000, the profit per employee is 1,000 zibdons. If in the previous year the turnover was the same, and all costs other than staff costs have remained the same, and staff numbers remain unaltered, but the profit per employee was then 1,500 zibdons, it would appear that the staff are not now as efficient as they were then.
What economic effect did dot coms have?
Some of them never produced a profit. They attracted many investors. They often promised more then they delivered.
If closing stock increases how will it effect net profit?
net profit will increase
What will be the effect of decrease in closing stock on gross profit?
i think Gross profit Will decrease
What is the effect of closing stock on net profit?
A business remaining stock at the end of an accounting period is known as closing stock. It may include the finished goods, raw material and work in process and it is also deducted from the periods costs in the balance sheet. however sales in the trading a/c do have an effect on the gross profit and hence in the profit and loss a/c for the net profit. An increase or decrease in closing stock will have an effect on the net profit..if closing stock increase the gross profit will increse and vice versa. As the gross profit will increase the firm will able to deduct more expenses from it and hence the remaining will be the net profit.( increase)
What effect does an overstatement of inventory have on a company's financial statements?
Overstatement of closing stock will inflate profit and overstatement of opening stock will have an inverse effect.
What is the accouting effect of closing stock is 5000 kilograms as per books of account but as per physical value it is 4500 kilograms?
this is overvaluing of closing stock --> gross profit overstate --> net profit overstated. current assets overstated.
What is the difference tween trial balance before closing and the trial balance after closing?
before we find gross profit ,after we got net profit
How do you get the closing stock in trading profit and loss when not given?
How do I find the opening stock when given the closing stock
Opening stock minus closing stock?
profit or loss
What is the effect on net profit if opening stock is undervalued?
If Opening Stock is undervalued, this will result in your Cost of Sales being understated and therefore Gross and Net Profit being overstated. Of course, since Opening Stock in this period is the last period's Closing Stock, this would mean that Closing Stock in the last period was understated too, meaning that Net Profit in the last period was understated. That doesn't make it OK though!
How will you find closing stock in trading and profit and loss account?
GROSS PROFIT = SALES - [OPENING STOCK + PURCHASES + DIRECT EXPENSES - CLOSING STOCK]... substitute if u have all the other values
Pizza Hut in profit?
no they are currently making a loss and on the verge of closing down
What is journal entry of closing stock?
it s transfer to profit and loss account.
