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Prior period items
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Where can someone get a profit and loss statement?
A profit and loss statement is a summary of how a much money a business has made over a period of time. If one has a very small business, it is possible to create one's own profit and loss statement using software, and one must send this in with the business' tax return. However, the larger the business, the more likely it is that an accountant or bookkeeper will need to create the profit and loss statement.
Why do companies produce profit and loss account?
Profit and Loss A/c:Profit and loss account as name describes prepares to determine the net profit earned by company in one accounting year and which is not available information in any other financial statement of company.
Why is an income statement prepared for a 1 year period?
It is not necessary to create income statement for one year but even then one year is considered reasonable time period for any type of company to find out profit and loss and for which financial statements can be prepared.
Single step income statement?
single step income statement is one of two formats in which only one subtraction is done to arrive at net profit or loss as follows:Net profit or loss = revenues - expenses
What is profit smoothing and how is it done?
Profit smoothing is a creative accounting method used to 'smooth' profit from one period to the next. It is used to maintain shareholders' profit expectations as profit from one period to the next can change significantly.For example, a mining company may earn profit of $1billion in one period and forecast profit for the next period indicate $1million. If the company were to announce profit of $1billion, shareholder expectation would be similar in the next period. Smoothing this profit to recognise $500million in the first period and $500million in the next period would promote investor confidence and presumably maintain a more consistence market price.
Is there a link to a profit loss statement online?
You can find a profit loss statement at www.accountingcoach.com/online-accounting-course/04Xpg01.html. If you have an accounting software they should also include one with that.
What is the purpose of a income statement?
All expenses and incomes related to one specific fiscal year is shown in income statement which ultimately bring down the net profit or net loss for that period.
What is included on a income statement?
All expenses and incomes related to one specific fiscal year is shown in income statement which ultimately bring down the net profit or net loss for that period.
What the benefits calculating loss and profit?
can c perfomence We can have many advantages and benefits by calculating the profit and the loss of the entrepreneur as below, 1. We can make future plans about the Organization according to the loss or the profit. 2. We can compare the situation of the Organization with other Organizations. 3. It is helpful to have new Investors for the company. 4. We can manage the Capital & other Assets according to the loss and the profit. 5. We should calculate the profit or the loss because it is a necessary requirement of the Accounting Law.
Give the formula of profits and loss?
a man purchased a dozen pens for rs 25 each and them at rs 28 each.find the total profit as well as the profit per cent on the transaction.
What are the advantages of using absorption costing?
One advantage of using absorption costing is that if you have items still in inventory at the end of an accounting period, you don't have to report the expense until the items are actually sold. The disadvantage is, this method can artificially increase your profit figures because the profit-and-loss statement isn't going to reflect all the expenses you had during the accounting period.
What is the difference between budgeted profit and actual profit?
Budgeted Profit is the one which a company's financial analysts expect to have in a particular period of time (e.g one year) in the future and Actual Profit is the profit which is actually earned by the company. David Morson http://www.activetrader-links.com/
