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  2. A trading statement in accounting is used to12:
    • Determine sales, cost of sales, and gross profit.
    • Calculate the gross profit or loss of a business engaged in buying and selling goods.
    Learn more:
    The trading statement is an expanded version of sales portion of the Income statement. The trading statement's main objective is to determine sales, cost of sales and gross profit. The trading statement it's part of effective book keeping within the accounting discipline.
    en.wikipedia.org/wiki/Trading_statement
    A trading account is a financial statement that shows the revenue, cost of goods sold, and gross profit or loss of a business for a given period of time. It is used to calculate the gross profit or loss of a business that is engaged in buying and selling goods.
    www.investoinfo.com/blog/trading-account/
     
  3. People also ask
    What is a trading statement?The trading statement is an expanded version of sales portion of the Income statement. The trading statement's main objective is to determine sales, cost of sales and gross profit. The trading statement it's part of effective book keeping within the accounting discipline . Sales - Cost of Sales = Gross Profit
    What is a trading statement & a balance sheet?Generally when you open it the first page is a trading statement, then a profit and loss and a balance sheet. So what is a trading statement? A trading statement is the top bit of your profit and loss and it shows you your income from your sales, less your direct expenses. What it does is it gives you what’s called your gross profit.
    How do you calculate a trading statement?Subtract the expenses from the gross profit. This answer represents the net profit or net loss by the purchases and sales of stocks in the trading account for the period referenced. This is the bottom line on the trading statement. A trading statement is similar to an income statement.
    What is a trading account example?Example Solution Trading Account FAQs What Is a Trading Account? The trading account shows the result of buying and selling goods. This account determines the gross profit or the gross loss of a trader at the stage of final accounts preparation. The following items usually appear on the debit and credit sides of a trading account.
     
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