Accounting glossary
What is gross profit?
Revenue minus cost of goods sold — the money the core trade generates before rent, wages and everything else. It is the first line of defense on the P&L: if gross profit is wrong, nothing below it can be right.
Example
Revenue of $166,700 less cost of goods sold of $101,000 gives $65,700 of gross profit.
It is the number that says whether the core trade works, before rent, wages and overheads enter the argument.
In SeroBooks
Computed on the P&L from the same ledger your sales and purchases post to. Reading a P&L →
Nearby terms
Stop looking terms up. Start seeing them work.
Free to start, on Windows, Mac, iPad and Android. No credit card.