Profit and Loss Statement Account

by Ashu

Profit and Loss Statement Account

Profit and Loss Statement Account

What will we find in the Profit and Loss Account?

How it is useful for our business?

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Jun 06, 2018
What Is On Profit and Loss Statement
by: Stephanie

Thank you for your question about what is found on a profit and loss account.

This is a statement in which you will find out how much money a company is bringing in and expensing out in a particular time frame, usually of a month, quarter or year.

You will see all sales and service income coming in as well as all money going out on cost of goods and overhead expenses such as advertising, rent, supplies, labor, etc..

And you will see the end net result of whether or not you are making money overall, or losing it.

It is useful to be able to see where your money is all coming from as well as where it is going back out to in order to budget.

It will also help you when preparing your income taxes and if you are attempting to get a loan or sell your business.

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