A simple answer - expenses increased somewhere within the business. If sales increase, then so should the profit margin theoretically. If the profit margin decreases, then expenses increased.
Net profit margin can go down because the price of a product or service decreases. It can also go down because the cost of the item increased.
Profit & Loss A/c [Debit] Provision for bad debts [Credit]
The provision for bad debts will be categorized under the profit and loss account.
Withdrawals and expenses are taking away profit/revenue for the company, therefore, not improving it so it decreases owner's equity. Th.
A bad debt is a expense which affects the owners equity as it is charged against the profit and loss account and it decreases the profit of the business.
1.net assets decreases and profit decreases 2net assets remain the same and profit decreases
as the marketing expenditure decreases
net assets decrease and profit decreases
bad media is motivated by profit
it increases the cost of goods sold and it decreases the gross profit.
Profit maximization can be both good or bad. Done correctly, profit maximization helps the company provide great products and services for customers.
because some company earn many profit and save some profit to use in the day of bad profit
That is commonly referred to as the law of supply and demand.
It helps because it decreases the taxes on all profit.
A simple answer - expenses increased somewhere within the business. If sales increase, then so should the profit margin theoretically. If the profit margin decreases, then expenses increased.
eman increases and decreases increases by doing right things and stop doing bad things and decreases by doing bad things and stop doing good things