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
It is reduction of taxes where from the income is produces and regarding services to be taxed there are about 120 services which are taxed in India for provision of service tax

On January 1, 2012, the organizers of the Parsons Corporation contained their charter and issued 10,000 shares of $1 par common stock for $4 per share. During 2012, the corporation

Question: Part A: Briefly explain the term "depreciation" and give three reasons why do we need to provide for depreciation on fixed assets during a financial year. Part

in 2011 hardin company had 220000 shares $10 par common stock, march 1 issued 45000 shares at $22, June 1 issued 15% stack dividend, July 1 issued 10000 at $27, Aug 31 2-for-1 st

1. Mama's Fried Chicken bought equipment on January 2, 2010, for $15,000.  The equipment was expected to remain in service 4 years and to perform 3,000 fry jobs.  At the end of the

Comprehensive Problem in Trial Balance Cash $ 26,470 A/R   14,222 Office Supplies    4,298 Prepaid Insurance   23,137 Equipment 131,495 A/D - Equipment   $19,096 Accounts P

Q. What is credit balance? If on the other side the sum of the credits exceeds the sum of the debits the account has a credit balance. For example assume that a company has an


How do your calculated stock prices compare to the company's present stock prices?   What do you think is causing them to deviate? This will need you to investigate a lit

Q. Sales returns affect both revenues and cost of good? When a company sells merchandise to customers then it transfers the cost of the merchandise from an asset account that i