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3 years ago

Account which shows gross profit or gross loss of the business is called

Business

1 answer:

Westkost [7]3 years ago

8 0

Answer:

Trading account

Explanation:

Preparing a trading account is the first process when drawing the financial statements of a business. The trading account is prepared using data from a firm's core trading activities. It shows profitability as a result of buying and selling or manufacturing and selling activities of a business.

The trading account shows the net revenues from the selling goods and services. It also shows the cost incurred in manufacturing or acquiring the goods meant for sale( cost of goods sold). Gross profits or gross sale is obtained by deducting the cost of goods sold from the revenues. Gross profit is when revenue exceeds the cost of goods sold. Gross loss is when the costs of goods sold are more.

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3 years ago

Assume that microbrewery beer is a normal good. Prices of microbrewery beer have risen steadily in recent years. Over this same

Shkiper50 [21]

Answer:

The correct answer is option D.

Explanation:

Microbrewery beer is a normal good. Its prices have increased recently in recent years. The prices for fermenting vats used in beer have also risen and the consumer income has fallen.

Since beer is a normal good an increase in its price and decrease in the consumer income will decrease its demand. As a result, the demand curve will move to the left, decreasing the price of the product.

At the same time, the increase in the price of fermenting vats will increase the cost of producing beer. This will cause the supply of beer to decrease.

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3 years ago

Account which shows gross profit or gross loss of the business is called​

Account which shows gross profit or gross loss of the business is called