why we use the term profit and loss account instead of
profit or loss account
Answer / chalapathi rao govada
The main objective of preparing the profit and loss account
is to know what is our netprofit or loss for a given period.
So based on this logic some of us will under an impression
that why can call it as profit or loss account.
But my dear friend just have a look at the logic below.
In the profit and loss account we will record all the
profit transactins and loss transactions.
Eg: profit on sale of a Fixed Assets.
Eg: Profit on Sale of investments in Stock market.
Eg: loss on sale of a capital Asset.
Eg: loss on sale of any security.
And: indirect transacitons which will altemately represents
profit or losses.Like
Sales --------- Major income source.
All revenue items---- Represents the earning capacity of
your organisation
All exp ----------- Which plays vital role in profit and
loss.
Is This Answer Correct ? | 6 Yes | 0 No |
what is serviuce tax,how to calculate service tax?
why you choose accounting as your career ? ?
what is cash flow & what is funds flow statement
what is investment banking
0 Answers RBI, State Bank Of India SBI,
what is interest on drawings
What is the journal entry of.Tds. ?
WCT ,TDS,Service tax ,costmor accounting
What is Accounting on Computers
Expand ------BSP
Discuss the role of cost accounting in managerial decision making?
what are responsibilities of an accountant in a company?
0 Answers Adhunik, DOT, State Bank Of India SBI,
what is deffered revanue expanditure
8 Answers Accenture, First Indian Corporation,