Question

General definitions of profit and loss chapter

Answer 1

Cost price : The price originally paid in buying an article is called its Cost Price (C.P.), or outlay.

Selling Price : The price that is realised by selling an article is called its Selling Price (S.P.), or Turnover.

Turnover : It denotes the cash value of the sales and thus equivalent to selling price,

Profit or Loss : The difference between selling price (S.P.) and cost price (C.P.) gives profit or loss.

Gross Profit and Net Profit : Gross Profit and Net Profit are defined as follows:

• Gross Profit = Total Sales - Direct Cost
• Net Profit = Gross Profit -- Indirect Cost

Answer 2

Explanation:

the amount of money left at surplus after selling a good that it cost is known as profit.

the amount of money loose by selling a good in less amount of money than it costs is called the loss.

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