## DragIT - Build a profit and loss account

Maze Green Yachts have had a major crash of their computerised accounting software and their profit and loss account is only partially complete. Drag the figures on the right onto the profit and loss account in the appropriate places to build the profit and loss account for Maze Green Yachts for the year ended December 31st 2010.

If you get stuck, you may find the hints below helpful. Once you have built the profit and loss account you may like to have a go at the questions below.

1

##### Profit and loss terms

Match the definitions/descriptions below with the terms to which they refer.

 a) Profit after tax + tax Choose... Net profit Turnover Profit after tax Profit before tax b) Gross profit + cost of goods sold Choose... Net profit Turnover Profit after tax Profit before tax c) Gross profit less expenses Choose... Net profit Turnover Profit after tax Profit before tax d) Net profit less interest and tax Choose... Net profit Turnover Profit after tax Profit before tax Yes, that's correct. Well done.No, that's not right. Have another go.Your answer has been saved.

2

##### Profit and loss account

Choose appropriate options below to give a description of the profit and loss account.

The shows the profit performance of a firm over a period of time. It will therefore be headed up XYZ plc Profit and Loss Account for the period 1st January 2005 to 31st December 2005 (or as appropriate). The profit and loss account starts with the of the firm. When the is taken off the turnover, this gives . If the are deducted from this, we get the . If we deduct from this, we get the . Finally the taxation is deducted to give the . This profit may either be kept by the firm for investment (in which case it is called ) or distributed to the shareholders in .

Yes, that's correct. Well done.No, that's not quite right. Have another go. You may like to have a look back at the structure of the profit and loss account before you have another go.Your answer has been saved.