0
1. To show lenders or banks, who you want a loan from, how your finances are doing.
2. So you can see what's happening in your business, money-wise.
3.To satisfy the company act requirement
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
Advantages and disadvantages of trading profit and loss account?
: Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period, Profit and loss account gives the actual information about indirect expenses, Profit and loss account serves to show the ratio between net profit to sales, Profit and loss account helps in showing the ratio between net profit to operating expenses, Profit and loss account helps in controlling indirect expenses
What are the basic type of financial statmentsprepared by business enterprise?
Profit & loss account and balance sheet
How profit or loss topic is useful in your daily life?
they hel to keep account and a great way for banking
How do I calculate simple profit and loss?
Profit or loss = income - expenses. A positive number is profit, a negative number is loss.
If the income of a business exceeds its costs the money that remains is called the?
profit
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.
Why profit and loss account is called as profit and loss account and why not profit or loss account?
Tradition, and the need to call it something.
What are the limitations of profit and loss account?
"What are the limitations of profit and loss account?"
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.
Advantages and disadvantages of trading profit and loss account?
: Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period, Profit and loss account gives the actual information about indirect expenses, Profit and loss account serves to show the ratio between net profit to sales, Profit and loss account helps in showing the ratio between net profit to operating expenses, Profit and loss account helps in controlling indirect expenses
What is debit balance of profit and loss account?
Debit balance of Profit & Loss Account represents "Loss"
Where do creditors go on a profit and loss account?
Creditors do not typically appear on a profit and loss account. A profit and loss account only includes revenue, expenses, and net profit or loss. Creditors are typically listed on a company's balance sheet under current liabilities, which reflects the amount owed to them at a specific point in time.
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.....
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 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.
About projected balance sheet and profit and loss account?
how to prepare the forecast report of profit and loss account with balancesheet
Which account you in 3 net loss?
The profit and loss account is the account that can be used to calculate the net loss.
