BM3 Profit and Loss Account (or Income Statement)

• Business Studies
• Secondary Education

00:00

For the IB Diploma Programme we do NOT study the:

1. Profit and Loss Account
2. Balance Sheet
3. Cash Flow Statement

01:20

Gross Profit is calculated by subtracting direct operating costs (Costs of Goods Sold) from:

1. indirect Operating Costs (or Overheads)
2. Operating revenue or gross sales
3. Gross profit
4. Operating profit

01:40

The bottom line (net profit or loss) is obtained by subtracting indirect non-operating costs (e.g. rent) from:

1. Operating Profit
2. Gross sales
3. Taxes
4. Overheads

03:49

Cost of sales or Cost of Goods Sold is:

1. A current liability
2. Equity
3. Indirect Operating Cost
4. Direct Operating Costs