What is a Profit and Loss account скачать в хорошем качестве

What is a Profit and Loss account

Profit & Loss is a measure of money made in a year to show how well the business is doing and for calculating tax. A profit & loss account is a measure of how the business has performed over a period of time - typically a year. It normally includes expenses, purchase of goods, overheads and depreciation of fixed assets. These are added up and taken away from the sales income - the difference is the profit or loss you have made. There are also different ways of calculating profit depending on the purpose of the accounts such as financial accounts, tax calculations or management purposes. For example there are rules that apply for tax purposes that you must follow which ignore depreciation. Basically, you should prepare profit and loss accounts depending on the parameters of what you need to know. Find out more at www.ams-accountancy.co.uk