Accounting for IGCSE & O level - Final Statements (Section 1 - No. 44)
What does the calculation of net profit for the year involve?
Revenue
Cost of Sales
Expenses
Gross Profit
Explication
Net profit is calculated from revenue, expenses, and gross profit, which is a derivation from revenue and cost of sales. It uses gross profit, subtracting expenses, to arrive at the final profit for the year.