| A | B |
|---|
| Appropriation account | shows what has happened to net profit |
| Change in stock | closing stock minus the opening stock |
| Cost in sales | costs of production such as raw materials costs, direct wage costs and changes in stock |
| Overheads | indirect business expenses which are not chargeable to a particular part of work or production e.g. heating |
| Gross profit | sales turnover minus cost of sales |
| Net profit | profit on ordinary activities before taxation |
| Profit and loss account | a record of revenues and costs of a business over a period of time |
| Trading account | shows operating profit by subtracting the cost of sales from turnover |
