0
Anticipate no profit but provide for all losses-explain this statement?
Wiki User
∙ 14y ago
This eminates from financial conservatism a foundational concept of accounting. The idea is that you do not recognize gains/profits until you have in fact realized them and that you reflect losses as soon as you are aware of them (even before actually realized if in fact they are likely to occur). Doing so keeps financial statements on a more conservative basis. Example, if you are a contractor and have a job that is going badly (i.e. going to have a substantial loss) you should reflect that loss in your financials before the job is completed. This helps more realistically reflect the company's financial position. If you were an investor and the loss on the bad job was deferred in work in process inventory, you might make an investment not knowing that the company was going to have this loss. It would be deceptive. You don't mind having gains that you were unaware of.
If this concept was followed more faithfully we would not have some of the publicly damaging financial failures that we have had.
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
What are the Advantages of a profit and loss statement?
what are the advantages of profit and loss statement?
Where can I find a profit loss statement?
A profit loss statement is a statement that summarizes costs, expenses, and revenues. Microsoft office has a downloadable profit loss statement template. The link to this template is http://office.microsoft.com/en-us/templates/profit-and-loss-statement-TC001115484.aspx
What is statement of profit or loss?
A statement of profit and loss is the business income and expense statement which sumarises the total income and expenses coming to the total profit (or loss) of the business which is the defference between the income and expenses.
What is another name for profit and loss statement?
income statement
What is the business definition for profit loss statement?
The business definition of the profit loss statement is a financial statement that explains your costs, expenses and revenues in a specific time period.
What is the mission statement for the royal bank of Scotland?
To provide a service to the public and make a profit.
What are the Advantages of a profit and loss statement?
what are the advantages of profit and loss statement?
How do you find Net Profit on Financial Statement?
In income statement. In the end of income statement you will find net profit.
Where can I find a profit loss statement?
A profit loss statement is a statement that summarizes costs, expenses, and revenues. Microsoft office has a downloadable profit loss statement template. The link to this template is http://office.microsoft.com/en-us/templates/profit-and-loss-statement-TC001115484.aspx
Profit of a business?
The profit of a business equals all income (of all types) less all epenses paid by the business gives you the net profit of the business. Most businesses produce a Profit & Loss Statement which will provide the net profit after income and expenses. http://taxresolutionaires.blogspot.com
What statement have selling expense?
Profit and Loss Statement
What is statement of profit or loss?
A statement of profit and loss is the business income and expense statement which sumarises the total income and expenses coming to the total profit (or loss) of the business which is the defference between the income and expenses.
What is another name for profit and loss statement?
income statement
What is the business definition for profit loss statement?
The business definition of the profit loss statement is a financial statement that explains your costs, expenses and revenues in a specific time period.
What is the mission statement of timex?
for the profit business the vision is to enhance the possible outcome with the relevant whereas the mission statement would be how to overcome the busniess issues in dealinfg with the profit or how to motivate to get the maximum profit
To make a profit while benefiting humanity is an example of a mission statement that?
"To make a profit while benefiting humanity is an example of a mission statement that" is a mission statement that is both capitalist and socialist in nature.
What is difference between P and L statement and income and expenditure statement?
Income and expenditure account is used by not for profit companies as they are formed for not for profit basis that's why they cannot use profit and loss account.
