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Why Accountants have to or must prepare INCOME STATMENT in
two stages Gross Profit And Net Profit

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Why Accountants have to or must prepare INCOME STATMENT in two stages Gross Profit And Net Profit..

Answer / sankeerthana

To know axactly the result of the venture we had undertaken
we prepare Trading account to know the gross result. With
that we can know the result and can take adecission whether
to continue the venture or not and also to take such steps
to improve the afforts to reach the targeted result if it
is not showing the expected one.With the profit an loss
account we can know the exact net result after meeting all
the relevant expenditure

sankeerthana
www.therealaccountants.com

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Why Accountants have to or must prepare INCOME STATMENT in two stages Gross Profit And Net Profit..

Answer / dambar dev ojha

To know the operaing expenses and direct expenses.

Is This Answer Correct ?    4 Yes 1 No

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