Luxottica Group , the Italian company that sells Ray Ban and Oakley sunglasses, reported netsales of €7.1 billion in 2012 and €6.2 billion in 2011. Gross profit increased from €4.1 billion in2011 to €4.7 billion in 2012. Was the increase in gross profit caused by ( a ) an increase in grossprofit per sale, ( b ) an increase in sales volume, or ( c ) a combination of ( a ) and ( b )?

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.