EEL214-2

Accounting profit is a company's total spendings.

• Yes

• No

Net Profit = Total Sales – Cost of Goods Sold

• Yes

• No

Net Profit is also called as Net Income

• True

• False

Separarting gross profit and net profit is good for analysing the performance of the company.

• Yes

• No

Usain started a business of sports goods. He spend $2000 montly on all his expenses. He earns $8000 in a month. What is his accounting profit ?

• $6000

• $3000

• $10000

• $4000

................ profit is the profit a business makes after subtracting all the costs that are related to manufacturing and selling its products or services.

• Gross

• Net

• Total

• Accounting