Definition of financial statements terms
Answer Text: Definition of financial statements terms:a) A trading period:-refers to a time frame within which a business undertakes its trading activities .-it is also called an accounting period or a financial year.b)gross profit-this is the difference between the sales revenue and cost of goods sold and is realized when sales revenue is greater than cost of goods sold.c) gross loss- this is the difference between cost of goods sold and sales revenue and is realized when cost of goods is greater than sales.d) closing stock-these are goods that remain unsold at the end of a trading period.e) opening stock-this is the stock at the beginning of a trading period.f) purchases returns/ return outwards.-these are goods that are returned by a business to its suppliers.g) sales returns/ return inwards- these are goods that are returned to the business by its customers.h) carriage inwards:- this is the money spent in transporting goods which are made for resale.
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