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Yes, provision for income tax is considered a profit and loss item. It represents the estimated tax expense that a company expects to incur based on its taxable income for the period. This provision is recorded on the income statement, reducing the net profit, as it reflects the cost of doing business and the obligation to pay taxes.
What else can I help you with?
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.
how does income and expenses account difference from Profit and Loss Account?
Income and expense for not for profit organisations is same as profit and loss account but they cannot use the name profit and loss account because not for profit organisations are not formed to earn profit.
When expenses are more than income is called?
Their is a LOSS of income, or loss for the business operation. You can have either a LOSS or a PROFIT or possibly break even with neither a loss or a profit.
What is the journal entery for provision for bad debts?
Profit & Loss A/c [Debit] Provision for bad debts [Credit]
Provision for bad debt is what type of a c?
The provision for bad debts will be categorized under the profit and loss account.
What is the difference between Income Tax and Provision of Income Tax?
Provision for income tax refers to the line item in the profit and loss statement. Income tax is a broad term and could mean current taxes (taxes actually payable to Government), Tax expenses/provision for tax- taxes reported in the P&L or deferred taxes (difference between current taxes and tax expense).
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.
How do I calculate simple profit and loss?
Profit or loss = income - expenses. A positive number is profit, a negative number is loss.
how does income and expenses account difference from Profit and Loss Account?
Income and expense for not for profit organisations is same as profit and loss account but they cannot use the name profit and loss account because not for profit organisations are not formed to earn profit.
What is Profit or loss account?
Profit and loss is nothing but an statements which shows the net profit and net loss during a period.
When expenses are more than income is called?
Their is a LOSS of income, or loss for the business operation. You can have either a LOSS or a PROFIT or possibly break even with neither a loss or a profit.
Profit and loss but why not profit or loss?
The intent of the document is to show both the income and expenses.
What is the journal entery for provision for bad debts?
Profit & Loss A/c [Debit] Provision for bad debts [Credit]
Provision for bad debt is what type of a c?
The provision for bad debts will be categorized under the profit and loss account.
If the income of a business exceeds its costs the money that remains is called the?
profit
What is the difference between Reserves and Provision?
Reserve is a an amount set aside from the profit when it is calculated. On the other hand provision is an amount charged against profit and loss in order to assist in calculating the accurate profit.
What is the formula for calculating loss?
You calculate loss the same as you would do profit income minus expenses (outgoings) = profit/loss If the answer is negative then you are making a loss, if the answer is positive then you are making a profit.
