Cost of Goods Sold: The cost of selling goods or items; calculated as the opening merchandise inventory plus purchases minus closing merchandise inventory
Expenses: The cost associated with sales, administration, and advertising
Gross Income: The income generated from sales; calculated by multiplying price by quantity; also referred to as gross sales
Inventory: A list of goods or materials in stock and available to be sold
Net Loss: The loss that results when expenses and costs are greater than income
Profit: The net income that remains after deducting all expenses and costs of doing business
Profit/Loss Statement: A financial statement or record that helps to track a business; also called a P&L
Profit Margin: Net income or loss divided by gross income/sales; written as a percentage
