im doing principles of accounts and i need an answer for class. quick reply plz.... thanx for your help
A purchase can be seen as the cost of goods ( usually called Cost of Goods sold). Take this away from your sales figure and you have your gross profit
An expense is the cost of running the business, such as rent wages and phones. Take this away from Gross profit and you have Net profit
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A purchase can be seen as the cost of goods ( usually called Cost of Goods sold). Take this away from your sales figure and you have your gross profit
An expense is the cost of running the business, such as rent wages and phones. Take this away from Gross profit and you have Net profit