Journal Entries for Revenue
A journal entry must be made each time a business makes a sale. This journal may be called a revenue, sales or income journal and the purpose of it is …
Revenue Recognition under FRS 102
Understanding the point at which sales can actually be recognised within your business’ financial statements is a crucial step in preparing a set of accounts. In this post we look …
How to Calculate the Gross Profit Margin
The Gross Profit Margin is a useful financial ratio to understand when analyzing a business’ profitability and performance. It allows us to see how much profit a business generates for …
What is Gross Profit and What does it Tell us?
In our last post we discussed what Cost of Sales is and how to calculate it. We talked about how Cost of Sales is used to calculate the gross profit …
What is Cost of Sales?
Cost of Sales is simply the amount of money a business has had to spend in order to generate the sales it has made within a period. In a simple …