This article explains basic accounting structures that exist in a business. The record to keep track in financial statements items is an account.
Posts published in “FINAL ACCOUNTS – PROFIT AND LOSS ACCOUNT”
Profit and Loss Account (P&L Account) is a Final Account that records Sales Revenue, all costs and profits or losses of the business.
Businesses usually have two types of spending such as Revenue Expenditure and Capital Expenditure. Here is how to correctly record these two types of spending.
As a business manager, you can improve Net Profit of your business by decreasing Indirect Costs (Overheads).
As a business manager, you can improve Gross Profit of your business by either increasing Sales Revenue or decreasing the cost of production.
Profit and Loss Account (P&L Account), or an income statement, contains financial data which business stakeholder groups find extremely useful.
Profit and Loss Account (P&L Account) contains financial data which business stakeholder groups find extremely useful.
Let’s take a look at very basic foundations of the accounting practice. It is important for accountants to follow the same accounting principles.
Final Accounts are records of all financial transactions of the business. At the end of each accounting period accountants draw up the Final Accounts.
Being professional as an accountant is important to prevent illegal practices, maintain a positive brand image and impeccable reputation.
There are two major types of accounting which include financial accounting and managerial accounting.