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Stakeholders, anyone who has an intrest in a business, are intrested in a companies profit and loss accounts for different reasons. Here are some examples:
Shareholder: To see how well the company has been performing and how therefore good their dividend payout will be
Government: Businesses performing well in country allows more money to be taxed from them and may attract other businesses from abroad
Staff: A financially sound business may be able to pay higher wages..
Mainly the look at them to see how much money they can extract out of the business.
What else can I help you with?
Why would stock be expensed in the profit and loss account?
Stock would be expenses to the profit & loss account (P&L) when: * It was used, or * It had no economic value
Under what heading would fixed assets show on a profit-loss account?
They do not reflect in the profit loss account at all.
Explain the process that drives the economic profit to zero in the long run for a perfectly competitive firm?
In perfectly competitive markets, economic profits are zero in the long run because firms are able to enter and exit the market. If firms in a perfectly competitive market are profitable, there would be an incentive for new firms to enter. Supply would increase, causing an increase in quantity and the price to be driven back down to equilibrium: NO PROFIT! If firms in a perfectly competitive market are suffering a loss, some firms would choose to exit the market. Supply would decrease, causing a decrease in quantity and the price to be driven back up to equilibrium: NO PROFIT!
What would you find on a profit and loss account?
In profit and loss account normally list all in the revenues and expenses and profit or loss for any particular fiscal year of company.
Is carriage inwards part of a profit and loss account?
Yes, it would go in Cost of Goods Sold.
How do I choose between different prop trading firms?
It would be best to compare key factors like profit split, fees, evaluation process, account types, and payout speed. There are many prop firms to choose from like Hola Prime, FTMO, Alpha Capital Group, etc. You can also start with a free trial and choose a firm that matches your trading style and goals.
What is the definition of an interested party in a 529 fund?
The Interested Party is someone other than the account owner that has the ability to call in and ask specific questions about the account. The interested party also gets duplicate quarterly statements. On a related issue, the Successor Account Owner is the person who will own the account if th eaower dies. If both the owner and successor died at the same time the account would then go the executor of the owner's estate.
What happens if revenue expenditure is recorded as a capital expenditure?
If that happens, there will be overstatment of the period's profit as well as overstatement of assets. This will reduce the future profit of business because the original costs of assets will be charged more to the Profit and Loss account in process of depreciation of assets.
Why is cost an important factor in market economies?
the least-cost production method will have to be used. If any other method were used, firms would be sacrificing potential profit. Any firm that fails to employ the least-cost technique will find that other firms can undercut its price.
How can you account services rendered by a nonprofessional?
I would need more information to answer this question. What is the reporting unit (e.g., a for-profit corporation, a non-profit, a governmental entity). Are the services charged or free of charge?
What is lost depreciation tax shield?
Lost depreciation tax means that loss of that tax amount which could be saved if there would be depreciation expenses in profit and loss account which will reduce the profit and hence the tax as well.
What are the implications of Negative General Reserve in balance sheet of a company?
It would be shown as Debit Balance of Profit & Loss Account on Asset side
