Uses of the profit and loss account, Accounting Basics

Uses of the Profit and Loss Account

1) The key utilize is to monitor and calculate profit. This suppose that the informat ion recording is correct. Significant harms can arise if the information is imprecise, either through lack of skill or deliberate fraud.

2) One time the profit (loss) has been precisely calculated, this can then be used for evaluation or judging how well the business is doing contrast to itself in the past, contrast to the managers' plans and compared to further businesses.

2154_profit and loss account.png

Posted Date: 10/15/2012 5:27:41 AM | Location : United States







Related Discussions:- Uses of the profit and loss account, Assignment Help, Ask Question on Uses of the profit and loss account, Get Answer, Expert's Help, Uses of the profit and loss account Discussions

Write discussion on Uses of the profit and loss account
Your posts are moderated
Related Questions

Q. What is Gross selling price? When a sale is on account it credits the Sales account as well as debits Accounts Receivable. The following entry records a USD 20000 sale on ac

Common size Financial Statements:   Below this process, the total of the tasks side and the total of the possessions side of a Balance Sheet are taken as 100 and each item in

It is a national organization of female accountants in America that plans to further the interests of women in the accounting career. The American Society of Women Accountants (ASW

Explain the term- CASH SHORT AND OVER This account is used to record both a shortage and overage of cash in cash drawer. When change is made during a business day, mistakes can

Some companies announce pro forma earnings and then disclose real earnings measured under US Generally Accepted Accounting Principles (GAAP) in their quarterly financial reports.


Q. Comparability in accounting information? When comparability exists reported similarities and differences in financial information are real and not the result of differing ac

Hi Team, I want to get an accounting assignment to be done according to NZ university standards. It''s from basic accounting (introduction to accounting). Need to be done by 10th

Purchase of office supplies what is the account classification?