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BBI2O Chapter 9: AccountingName:
Income Statements
Financial statement that shows a business ___ (or ___) over a stated period of time week, month,
quarter, year
Revenue money, or the promise of
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How to fill out profit and loss statement
How to fill out profit and loss statement
01
Gather all financial data related to your business for the specified period.
02
List all revenue sources such as sales, services, and investments.
03
Calculate the total revenue by adding up all the revenue sources.
04
List all expenses including cost of goods sold, operating expenses, and taxes.
05
Calculate the total expenses by adding up all the expenses.
06
Subtract total expenses from total revenue to calculate the net profit or loss.
07
Include any additional information or notes to provide context for the financial results.
Who needs profit and loss statement?
01
Business owners to track performance and make informed decisions.
02
Investors to evaluate the financial health and profitability of the business.
03
Lenders to assess the risk of providing financial assistance.
04
Government agencies for tax reporting and regulatory compliance.
05
Potential buyers or partners during mergers and acquisitions.
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What is profit and loss statement?
The profit and loss statement is a financial document that summarizes a company's revenues, expenses, and net income over a specific period of time.
Who is required to file profit and loss statement?
Businesses, corporations, and self-employed individuals are required to file profit and loss statements for tax and financial reporting purposes.
How to fill out profit and loss statement?
To fill out a profit and loss statement, one must list all revenues, subtract all expenses, and calculate the net income for the period.
What is the purpose of profit and loss statement?
The purpose of a profit and loss statement is to provide an overview of a company's financial performance and to determine its profitability.
What information must be reported on profit and loss statement?
A profit and loss statement must include revenues, expenses, gross profit, operating income, net income, and any other relevant financial data.
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