enterprises as individual producers receive from the sale of its products monetary revenue.This revenue does not show a profit.The financial result of the company total revenue necessary to compare all the costs of production and sales, attributable to the production costs.
If the cost of lower revenues, the financial result shows a profit.If revenue is equal to the cost, the financial result is equal to zero, that is, the company only managed to cover the cost of production and sales.If the costs are higher than the revenue, the company remains in the statement.This indicates receipt of the negative financial result.
Thus, profit is the main goal of entrepreneurial business.Revenue and profit of the company relate to each other as follows.
Enterprise Income - an indicator of the economic benefits, which is expressed in the form of assets or income reduction commitments, which together lead to an increase in equity capital of the enterprise (except for an increase in its contributory owners).
revenues are classified according to groups: revenues from sales, other operating income (rental income assets, exchange rate differences), financial income (from investments, investment, interest, dividends), other investment income, the sale of assets.
Profit enterprise - this is the main part of the money savings, which is created by enterprises of all forms of ownership.It reflects the financial result of the economic business of the organization.The company's profit as an indicator of the efficiency of production allows to determine the quantity and quality of products, the level of cost, productivity.On the other hand, come stimulates the strengthening of commercial calculation and intensify production.
In terms of profits can be seen on the plan and evaluate the business activity of the enterprise.
profits of an enterprise are the following types of income: gross operating profit from ordinary activities and the profit remaining after tax.
financial performance calculated in the following sequence.
1. Determine the net income from sales of products (services) by subtracting from the gross income from the sales of VAT and others. Taxes and fees.
2. calculates gross profit (loss).It is defined as the difference formed between net sales and cost of sales of finished products.
3. Calculate the financial result from operating activities.
4. Calculated income (loss) from operations before income tax.
5. profit (loss) from ordinary activities.
6. Vychivlyaetsya earnings (loss) based on emergency activities.
company's profit as the final financial result of business activity is the difference between net revenues and cost of production and sales operations, taking into account losses from all types of business transactions.
net profit of the company for the reporting period is determined by adjusting the profit from ordinary activities in the amount of income and expenditure, which appears in an emergency.
In the future, the net profit is allocated to capitalized and consumption part.Capitalized part - is the funds allocated for investment development of production and the formation of reserve and insurance funds.Consumption is spent on the payment of corporate rights owners financial incentives of workers and education funds sotspotrebnostey.The remaining part forms the retained earnings, which is financed by equity capital.
