Profit is an important test point in the junior accounting professional title examination. Today we will specifically sort out the profit-related test points.
If you think of profit as a piece of cake, it can be composed of three parts. They are the net amount of revenue minus expenses, non-operating income and non-operating expenses. The net amount after revenue minus expenses refers to revenue - expenses = profit; non-operating income refers to gains directly included in current profits; non-operating expenses refer to losses directly included in current profits.
01. Calculation steps of net profit
To calculate net profit, it is important to master the calculation steps. First calculate the operating profit, then calculate the total profit, and finally calculate the net profit. The main calculation process can be referred to the figure below:
If the proposer wants to dig a hole, he can set a hole in the operating profit. For example, the amortization of leasing out non-patented technology is included in other business costs, which will lead to a reduction in operating profits. Options such as the cost of goods donated to external public welfare, late tax fees paid, and net losses caused by natural disasters are confusing items. These are included in non-operating expenses and do not affect operating profits.
The other step is to identify which options are included in other business income, asset disposal gains and losses, asset impairment losses and other accounts.
For example, income from the sale of packaging is included in other business income; net losses from the sale of fixed assets are included in asset disposal gains and losses; fixed asset impairment losses recognized are included in asset impairment losses.
02. Non-operating income and expenses
03. Methods of carrying forward this year’s profits
There are two methods of carrying forward this year’s profits. One is the table closing method and the other is the account closing method. Focus on the accounting treatment of carrying forward this year's profits.
The specific T-type account is as follows: