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Sunday, 27 December 2009

Advantages Of Trading Account

Posted on 20:36 by Unknown
Here are the following advantages of trading account

1. Trading account shows the relationship between gross profit and sales that helps to measure profitability position.

2. Trading account shows the ratio between cost of good sold and gross profit.

3. Trading account gives the information about efficiency of trading activities.

4. Trading account helps to compare between cost of good sold and gross profit.

5. Trading account provides information regarding stock and cost of good sold.
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