Profit and loss account, Cost Accounting

Both the parts, Profit and Loss Account and Trading Account of last account are interdependent upon each other. Gross Profit or loss plays a very important role in the calculation of net figure of Profit and loss. Trading and profit and loss account provides the true picture of an organization through showing its revenues and expenses. Such account is normally prepared at the ending of the accounting period. Balance Sheet like we have observed is one of the most significant financial statements. This is a periodic summary of the financial position of the business. This is the statement of assets, owners and liabilities' capital at an exacting point in time. Such statement in itself does not reveal anything regarding the details of the operations of the business. Though, a comparison of two balance sheets could reveal the modifications in business position. A realistic understanding of the operations of the business would need two other statements: Cash Flow Statement and Funds Flow Statement. We shall acquire them up in subsequent sections.

Posted Date: 4/4/2013 1:59:05 AM | Location : United States







Related Discussions:- Profit and loss account, Assignment Help, Ask Question on Profit and loss account, Get Answer, Expert's Help, Profit and loss account Discussions

Write discussion on Profit and loss account
Your posts are moderated
Related Questions
Bedovin Company manufactures office tables and chairs using the job order cost system

A company wishes to devise a fair means of allocating funds to its four main departments, namely Accounts, Production, Sales and Transport. The total allocation is to be £100,000.

Waylander Coatings Company purchased waterproofing equipment on January 6, 2013, for $320,000.The equipment was expected to have a useful life of four years, or 20,000 operating ho

Direct Materials Total Variance Direct materials total variances refer to the difference between the standard direct material cost of the actual production volume and the actu


A company is investigating the effect on its cost of capital with respect to the tax rate. Suppose there is a capital structure of 20% debt, 10% preferred stock, and 70% common sto

Role f marginal costing in management information system

i want to understand everything about contract account

#questionFrame-it Ltd is a manufacturer of metal picture frames. The firm''s two product lines are designate S (small frames: 12 x18 cm) and L (large frames: 20 x 25 cm). The prima

Prod 400000 DM cost $3 DL 24 moh v 1.80 F 4.50 products 35000 DMP12000lb@$11/lb DM use10450lb DL38500HR 880500 v moh64150 FMOH152000