SOPL

Question 1

Explain Statement of Profit or Loss (SOPL)?

Answer 1

Summary of income generated and expenses incurred to generate profit over a period of time.

Question 2

Explain Gross Profit?

Answer 2

sales revenue less cost of goods sold = GROSS PROFIT

Question 3

Explain Cost of Goods Sold?

Answer 3

direct costs that go into the production of goods sold by a company.

Question 4

Explain Net Profit?

Answer 4

any other running costs deducted from the gross profit to give you NET PROFIT.

Question 5

Explain the formula for “cost of goods sold”?

Answer 5

Opening stock + purchases - closing stock = cost of goods sold

Question 6

Explain the formula for SOPL?

Answer 6

Sales - cost of good sold = Gross Profit - expenses = Net Profit earned