A profit
Accountants are responsible for the preparation of three main types of financial statements of an enterprise. The statement of income of the reports of the profitable activities of the company and the net profit or loss for a specified period. Balance sheet reports the financial situation of the company at a point in time, the last day of the period of ofteh. and reports cash flows statement how much cash was generated on the basis of profits that the company has done with this money.
Everyone knows profit is a good thing. This is what our economy is based on. It does not appear as a big problem. Make more money that you spend to sell or produce products. But of course nothing is ever simple, really is - this? A net profit, or profit and loss account first identifies the activity and the period is summarized in the report.
You read an account of losses and profits from the top to the bottom line line. Each step of reporting income tax deduction of a burden. The profit and loss account also reports changes in the assets and liabilities, so if there is a growing sales, either because there has been an increase in assets or a reduction in the obligations of a company. If there is an increase in the cost line is, it is because there is already a decrease of assets or an increase in liabilities.
Net value is also called the equity in the company. They are not exactly interchangeable. The net value expresses the total assets less liabilities. Equity refers to the owner of the assets after the obligations have been met.
These changes in the assets and liabilities are important to the owners and managers of a company because it is their responsibility to manage and control such changes. A profit in a business includes different variable, not only increase the amount of money by a company, but Administration also flows of other assets.
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