Question

define profit and loss ?and two characteristics​

Answer 1

Gross margin is sales less cost of sales, and profit (or loss) is gross margin less operating expenses and taxes. ... The result is profit if it's positive, loss if it's negative.

A P&L usually has five main components:

revenue (sales/turnover)

cost of goods sold (COGS)

gross profit (revenue minus COGS)

expenses.

net profit (gross profit minus expenses).