In the income statement we may get profit or loss but the name of the statement was Profit and Loss account Why it was so?

Answer Posted / mudunuri

In the income statement there may be other revenue receipts other than main activity of the business. Even though main business activity brings loss to the concern and because of other income it will result in profits. Hence Profit and loss account is a mixed statement with loss from main activity and profit from other activity

Is This Answer Correct ?    1 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

we have registered to MCCIA(Maratta Chember of Commerce Ind & Agri.).They given a Tax Invoice against this registration with charging service tax@10.3%.can we take credit of this service charge ?

1651


Differentiate public and private accounting?

648


What do you mean by Bill of Exchnage.How to manage ? Explain

1505


What is the difference between a cash flow statement and an accural profit & loss account ? And why do simple organisations do not feel the need for a profit and loss type of statement ?

1618


If a promoter has purchased an asset on behalf of the company before the incorporation of the same then what will be the accounting treatment to record the asset in the books of company

1137






Anti Takeover policies

1663


What is an over accrual?

613


What is the Technology used to carry out trades? Pls Tell me as early as possible.

3075


Please advise how to calculate net asset....

1865


what are your current financial and accounting projects? What is your role?

2396


what is faviourable balance,and overdraf balance in Brs? Give me sms on this no. 9885789716

3150


Why does the accounting equation have to balance?

624


Tell me what are the activities that includes in cash flow statement?

947


state (5) accounting concepts and give 1 example of each

1518


What is aggregate Liabilities ?

1754