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Profit & Loss Statement: It is the statement which just shows how much profit a company has earn or loss bear in current fiscal year.
Cash Flow Statement: It is the statement which shows how much cash has been utilized by organisation for different functions of business and how much cash is available which helps to ensure liquidity to run business.
Difference between them is that as mostly accounting systems work on accrual basis so from profit and loss statement we can see how much profit or loss made but it does not show how much cash is available as income or expense is recorded on accrual basis that's why cash flow statement is very important financial statement to check that how much cash is available which information is not available through any other financial statement.
For Example:
Profit and loss statement shows us that goods sold for $1000 but does not show whether we received those $1000 at the end of fiscal year or not and this information can be attained by cash flow statement.
What else can I help you with?
Where to find profit and loss statement for hotel?
If they are a publicly-traded company you can find their financial statements at ww.sec.gov. If they are private, you will have to ask them to see their statements and they do not have to oblige.
What are the accounting requirements of not-for-profit organizations?
Three financial statements are required to be issued: a statement of financial position (balance sheet), a statement of activities (income statement), and a statement of cash flows
What are two financial statements?
Commonly, financial statements consist of the BALANCE SHEET, INCOME STATEMENT, STATEMENT OF STOCKHOLDERS EQUITY and the CASH FLOW STATEMENT. Different industries and businesses have different names for some of the statements and add to, or use combination of, the forms above. The not-for-profit industry, for example, generally calls the balance sheet the STATEMENT OF FINANCIAL POSITION and the income statement the STATEMENT OF ACTIVITIES. In business and analytical circles, the document containing the auditors report, the collection of applicable statements, and the accompanying notes are collectively referred to as the financial statements. -APMc
What are the differences between a nonprofit and a not-for-profit?
No difference.
What makes some companies more profitable than others and what are the similarities and differences between profit and profitability?
what are the similarities and differences between profit and profitability?
What are the differences between gross profit and full cost profit?
gross profit is taken from the profit and loss account
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.
What are the differences between cost volume profit analysis and break even profit analysis?
there no difference between break even profit analysis and cost volume profit analysis
Three key financial statements that corporations are required to prepare?
Statement of financial position ( Balance sheet) , Statement of Comprehensive Income ( Profit and Loss Account or Income and Expenditure account), Cash flow statement.
What will you find on a income statement and balance sheet?
Current period profit or loss is shown on both financial statements - at the bottom of the Income Statement and in the Retained Earnings section of the Balance Sheet.
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.
What are the 3 basic financial statements?
Balance Sheet Statement of Income Statement of Shareholders (Owners') Equity Statement of Sources and Applications of Cash (or Funds) Balance Sheet Statement of Income Statement of Shareholders (Owners') Equity Statement of Sources and Applications of Cash (or Funds)
