Project 1

Project 1: The Worksheet

 

 

What Do I Need to Know?

 

To determine if a business has made a profit, called “net income,” or a loss, called “net loss,” a person needs to look at the expenses the business incurred during the same time period as revenue that was received.

 

If revenue is greater than expenses, the business has a net income. If expenses are greater than revenue, the business has a net loss for that fiscal period.

 

Why Is This Important?

 

It is important for a business to know if the money received from revenue, or sales to customers, is greater or less than the money spent to keep the business running. With this information, a business is able to try to increase profits and make some critical decisions by answering questions such as the following:

• Are there some expenses that can be lowered?
• Can sales be increased? 
• Is it worthwhile to stay in business?

What Do I Need to Do?

 

Open up Gurpreet’s Worksheet that you saved in your course folder during the last training room. 

 

You now need to calculate the net income or net loss and include that in the worksheet. View Calculating Net Income or Net Loss for instructions on how to do this. Complete the net income on Gurpreet’s worksheet.

 

Now you need to complete the worksheet by balancing all of the debits and credits before totaling and ruling the worksheet. Recall that ruling means to put the total lines in the accounting form. View Total and Rule the Worksheet for instructions. Total and rule Gurpreet’s Worksheet. Be sure to save your work before continuing to Time to Practise.

 

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