Question

what is Gross preotit ​

Answer 1

Answer:

᭄ꦿ★ANSWER ★᭄ꦿ᭄

For households and individuals, gross income is the sum of all wages, salaries, profits, interest payments, rents, and other forms of earnings, before any deductions or taxes. It is opposed to net income, defined as the gross income minus taxes and other deductions. 

Answer 2

ANSWER :

❖ Gross Profit :-

• ➬ Gross Profit can be defined as the profits generated from carrying on the business activities of a business.

• ➬ The excess of revenue generated over cost of manufacture or purchases of goods is known as Gross Profit.

• ➬ Gross Profit is the excess of Net sales over the Cost of Goods Sold and therefore the amount of Net Sales and Cost of Goods Sold will have to be ascertained in order to find out the amount of Gross Profit.

$\underline{ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: }$

❖ Formula for Calculating Gross Profit :-

$\bigstar \: \: \boxed{ \sf{ \: Gross \: \: Profit = Net \: \: Sales - Cost \: \: of \: \: Goods \: \: Sold \: }}$

• ➺ Net Sales = Sales - Sales Returns

• ➺ Cost of Goods Sold = Opening Stock + Net Purchase - Closing Stock

Or,

• ➺ Cost of Goods Sold = Opening Stock + Net Purchases + Expenses incurred in connection with purchase and Manufacture - Closing Stock

• ➺ Net Purchases = Purchases - Purchase Returns.