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profit and loss2

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profit and loss2

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Recommended age: 21 years old
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Created by

lma work
lma work
United Kingdom

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profit and loss2Online version

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by lma work
1

an a the the The a the A the the the the the the The the the the a the a the the

profit and loss account shows results of company's trading over last financial period ( i . e . period between two balance sheets ) . Usually this means year , although year end date can be chosen by company . December 31 and March 31 are popular , although it could be April 1 or November 5 etc . profit and loss account shows effect on company's revenue account of all transactions over past year .

profit and loss account measures profit or loss made on goods or services sold during the period . It does not measure cash flows into and out of business . This is essential difference . Cash flow is vital part of financial management of business and is not dealt with here . To manage business both profit and cash must be considered .

Source : Times100 Business Case Studie s

 
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