Profit and loss account

It may seem easy to define just exactly which profit and loss account. But of course these definitions as everything else. Profit may be called different things, to begin with, sometimes referred to as net income or net profit. Companies that sell products and services generate profits from the sale of those products or services and accident cost of running the company manage. Profit is also known as return on investment, or ROI. While some definitions to profit on ROI restrict investments in such evidence if shares or bonds, often use this term to refer to the short and long term business results. Profit is also known as taxable income.

It is the task of accounting and finance professionals to assess the profits and losses of a company. They need to know what both are created and what the results from both sides of the business equation. They determine what the net worth of a company. Net value is the resultant dollars amount with the deduction of liabilities for a company from the assets. In a private company called this also equity, then any remaining after all invoices are paid, simply put, belong to the owners. This gain is a listed company, returned to shareholders in the form of dividends. In other words, all obligations of the first claim that all the money the company makes. All that remains is profit. It is not derived from an element or another. NET value is determined after all obligations of all assets, including cash and property is deducted.

A gain or a positive image is shown in the balance sheet is, of course, the goal for all companies. This is what our economy and society are built, and it doesn't always work that way. Economic trends and consumer behaviour change and it is not always possible to predict this and what income they have on the performance of a company.

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