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What is the difference between a P and L Statement and an Income Statement?
They are the same thing. "P and L Statement" is an older less-commonly used term for an "Income Statement."
What was the income statement previously called?
The Income Statement is also called the P&L (Profit and Loss) Statement.
Depreciation expense appears on what financial statement?
Income Statement
What is the difference between profit and loss account and budget?
Budget is pre-facto and P&L is post-facto. Budget can be defined as projected Income/P&L statement.
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.
How do you calculate net income from balance sheet?
You can't ! it's a function of the Profit and Loss Statement. Income from previous years will appear on the balance sheet...but Net Income is a P&L Function.
What is your conclusion in financial statement?
the financial statement helps one to know the difference between income or gains and expenses or losses in p and l A/C.and the balance sheet to compare with the last years profits.
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).
Do accounts receivable go on an income statement?
Nope. It goes to the Balance sheet (Debtors) under Current Assets. What goes into income statement is Sales (both cash and credit). DR Debtors CR Sales. Debtor goes to B.S and Sales goes to P&L.
What does P and L consist of?
The Profit and Loss statement (P&L) mainly consists of revenues, expenses, and resulting net income or loss for a specific period. Revenues represent the income generated from selling goods or services, while expenses include costs incurred to generate that revenue. The net income is the difference between total revenues and total expenses, indicating the profitability of the business for that period.
Is cash flow the same as income?
No a Profit & Loss statement will tell you net imcone, which is not the same as cash flow. Cash Flow is the result of a sources and uses of funds statement which is often a better indication of how a buisness is performning that the P&L.
Why is it mandatory that depreciation expense be included in the P and L?
Depreciation expense represents the (systematic) decline in value of fixed tangible assets. The income statement (or P&L) shows the revenues and expenses of a company, including depreciation expense.
