How to make Profit and Loss(Income) Statement with Example
How to make Profit and Loss(Income) Statement with Example INDEX of this Post [ hide ] What is a Profit & Loss Report What is a Profit & Loss Report (also known as an Income statement) is a type of financial report that has one main purpose: To show how easy it is for a company to create new wealth. Understanding the rationale of the report and learning how to use it can help you to understand how companies generate new wealth, help managers to improve the way the company generates wealth, and more importantly, also can help you identify businesses that do generate wealth easily, opening the door to using this information to generate a lot of wealth for yourself and your family. It is an incredibly easy report and well worth your while to understand. Basics of Profit and Loss/ Income Statement The profit and loss account is a way of calculating net profit and is, therefore, an important guide as to the profitability of the business. In accountancy, there are three ...