What is the relationship between total profit and operating profit
The total profit of an enterprise generally refers to the total profit of the enterprise in a certain period, and the operating profit refers to the profit obtained by the enterprise from its production and operation activities. What is the relationship between the two?
Relationship between total profit and operating profit
Total profit=operating profit+non operating income - non operating expenditure, that is, total profit includes operating profit.
Operating profit=operating income - operating costs - taxes and surcharges - selling expenses - administrative expenses - financial expenses - asset impairment losses - credit impairment losses+gains from changes in fair value (- losses from changes in fair value)+investment income (- investment losses)+gains from asset disposal (- losses from asset disposal)+other gains
Operating income=main business income+other business income
Operating cost=main business cost+other business cost
What accounts affect operating profit?
Operating profit refers to the profit obtained in the production and operation activities of an enterprise, which is the main source of enterprise profits.
The items that affect operating profit include main business income, other business income, main business cost, other business cost, taxes and surcharges, sales expenses, administrative expenses, financial expenses, asset impairment loss, credit impairment loss, income from changes in fair value, investment income, asset disposal profit and loss, and other income.
What does total profit mean?
Total profit is the symmetry of "total loss". The final financial results achieved by the enterprise through production and operation activities in a certain period of time. One of the components of enterprise net income. The total profit of industrial enterprises is mainly composed of sales profit and non operating net income and expenditure (non operating expenditure minus profit).
Accounting entry of profit carried forward
Income carried forward:
Debit: main business income
Other business income
Non operating income
Credit: Profit of this year
Carry forward costs, expenses and taxes:
Debit: Profit of this year
Credit: main business cost
？ ？ ？ Taxes and surcharges
？ ？ ？ Other business expenses
？ ？ ？ selling expenses
？ ？ ？ Administrative expenses
？ ？ ？ Financial expenses
？ ？ ？ Non operating expenses
Investment income carried forward:
Net income:
Debit: investment income
Credit: Profit of this year
Net loss:
Debit: Profit of this year
Credit: investment income
