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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.
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 the difference between profit and loss account and profit and loss appropiation account?
Profit and loss accont is used to calculate the profit or loss of business while profit and loss appropriation account is used to allocate or distribute net income or loss to share holders or different reserves account.
Is profit and loss account is a nominal account?
Yes. Profit and loss account is a nominal account and also trading a/c to be prepared at the end of the year.
What is company account?
Company accounts are a disclosure of the financial information of a limited company, usually provided in the form of a profit & loss account and a balance sheet. Company accounts are usually filed annually.
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.
What is the meaning of close the Profit and Loss Summary account?
profit is when the company is making money and a loss is the company is not making money.
Purpose of profit and lost account?
The purpose of the profit and loss account is to give you an idea about whether a company has made a profit or loss more than a financial year. An income and loss account begins with the trading account and then takes into account all the other outcome associated with the company.
Performance of a company is disclosed in profit and loss Account Yes-No?
yes income statement or profit and loss account is primary object of disclosing the performance of a company or enterprise
Why profit and loss account is called as profit and loss account and why not profit or loss account?
The profit and loss account is named as such because it summarizes a company's financial performance over a specific period, showing both the profits earned and the losses incurred. The account reflects the net result of all revenues and expenses, indicating whether the company has made a profit or suffered a loss. Using "profit and loss" in the account's title emphasizes the importance of considering both aspects of a company's financial outcomes in a comprehensive manner.
Profit and loss appropriation account uses meaning?
details of profit and loss appropriation account Profit and loss appropriation account is prepared after profit and loss account..It s a account where the profits earned by the company is brought in from profit and loss accont and it s distributed to various accounts like interim divident account, provision for taxiation account, general reserve account etc.....it s a account which shows how the profits are distributed in an organisation.....
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.
What are the limitations of profit and loss account?
"What are the limitations of profit and loss account?"
Are profit and loss account on an income statement or balance sheet?
Profit & Loss Account is the Statement showing indirect expenses and receivable of a Company where as Balance Sheet is the Statement highlighting Assets and Liabilities of the said Company.
Where do creditors go on a profit and loss account?
I'm a student myself but i don't think that you have to use creditors in a trading, profit and loss account....i think it's given for the balance sheet that you have to make after the trading, profit and loss account.
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 the difference between profit and loss account and profit and loss appropiation account?
Profit and loss accont is used to calculate the profit or loss of business while profit and loss appropriation account is used to allocate or distribute net income or loss to share holders or different reserves account.
