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Show whether a business has made a PROFIT or LOSS over a financial year.
Profit and loss account ib business. Balance Sheet - Shows what an. A profit and loss account starts with the TRADING ACCOUNT and then takes into account all the other expenses associated with the business. Also known as the income statement the profit loss account shows a firms net profit or loss after all production costs have been subtracted from the organizations revenues each year.
Items that the company owns and does not intend to sell - FAs help the business. The purpose of the profit and loss account is to. Prepare a profit and loss account for the year ended 31 December 2014.
They are also known as income statements. Total revenue 1000000. Categorising costs between cost of sales and operating costs.
Differentiate between the reducing balance and the straight line methods of depreciating fixed assets. 426 Gross Profit 573800. Profit and Loss PL account This shows the net profit or loss of a business at the end of a trading period.
Profit and loss account for PP for year ended 30 April 2018. Hence net profit is the actual profit made from a firms normal trading activities. IB Business Management Finance and Accounts 34.
Profit and Loss account The Profit and Loss Account also called the Income Statement is similar to the aforementioned Trading Account while the Trading account calculates Gross Profit the profit. Describe how the profit or loss arose eg. Example firms that sell inferior products at a high price will have LOW profit.
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