In accounting terms, what is the difference between profit and loss

Q: In Accrual-Basis Accounting how can you recognize your Revenues?

A: The accounting based on accrual method refers to recording of revenue and expenses when they are…

Q: Which of the following types of information is not found in financial statements? * O Profits O…

A: Financial statements refers to a set of documents prepared by a company for every year of…

Q: difference between Gross Earnings and Net Earnings

A: Gross earnings and Net earnings are two terms used in financial accounting while computation of the…

Q: What formula is used to determine net profit

A: Net profit is the actual income earned by an organization after paying all the expenses. It is…

Q: How do you find gross profit in financial accounting?

A: Gross profit is the income earned by the company after deducting the cost of goods sold from the…

Q: The difference between revenues and expenses is net income. What is net income?

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: True or false The income or loss reflected in the Income Statement is the result of the application…

A: The major accounting concepts are enumerated as below : a) Accrual  b) Consistency c) Going concern…

Q: What is accrual accounting and how does it work?

A: Accrual accounting is a system of accounting wherein: Revenues are recognized as and when they are…

Q: What is the correct net income under the accrual basis of accoun

A: Two Methods: (1) Cash basis (2) Accrual basis. In cash basis income and expenditure are recorded as…

Q: Which of the following types of information is not found in financial statements? * O Profits…

A: Financial Statements shows the financial performance and financial position of the company which…

Q: Which of the following is not a typical example of an accrued expense? Wages Taxes Depreciation…

A: Accrued expenses are considered as current liabilities in books of accounts. These are the…

Q: How does expense recognition impact the accounting equation

A: The accounting equation states that assets equal to sum of liabilities and equity.

Q: Explain the difference between profit and profitability.    Explain the concept of going concern…

A: Following are the difference between profit and profitability: Profit is an absolute figure that…

Q: Why is the accrual basis of accounting generally preferred over the cash basis?

A: Accrual accounting aims to record the impacts of accounting events in the period when such events…

Q: some examples of items that would be adjusted directly against equity, rather than being included as…

A: The items included in other comprehensive incomes are not considered under profit or loss account…

Q: If a company failed to record an accrued income, what would be the effects?

A: Accrued income is that income which is being earned by the business for the particular period of…

Q: Which of the following are not expenses? * O Cost of goods sold O Wages earned but unpaid O…

A: Dividend distribution is a kind of deduction from the total retained earnings of the organization.…

Q: What is meant by net income and net loss?

A: When the company has more amount of revenue it would have positive income whereas when company has…

Q: When is Profit and Loss Account made? Why?

A: Profit and loss account: profit and loss account also called an income statement. Every business…

Q: What is meant by “economic Consequences” in accounting standard-setting

A: Definition: Financial accounting standards board (FASB): This is the organization that creates,…

Q: Explain clearly how would you read a Balance Sheet and the statement of Profit and Loss.

A: Balance sheet and statement of profit and loss are the financial statements of a company. The…

Q: How does EVA differ from accounting profit?

A: Introduction: Economic value added is the sum of net earnings over capital costs. EVA corresponds to…

Q: What are the differences between EVA and net profit in accounting

A: Introduction : Businesses may assess investment prospects using economic value-added and accounting…

Q: How do you maintain accounting accuracy?

A: Maintaining accuracy in the accounting records is an essential requirement for every entity involved…

Q: Difference Between Financial Accounting And Bookkeeping?

A: Definition:   Bookkeeping: Bookkeeping is the process of recording financial transactions and other…

Q: Does the deductibility of an expense or loss follow accounting practice?

A: The accounting practice is the practice of recording the day-to-day financial transactions of the…

Q: What is the formula for gross profit

A: Gross profit is an excess of revenue over the cost of goods sold.it can be calculated by deducting…

Q: How do gross profits, operating income, and net income differ

A: In finance when making or analyzing an income statement we look into different types of income or…

Q: what is assets? what is non-current assets? what is current assets? what is equity? what is…

A: Since you have asked multiple questions, we will solve the first seveb questions for you. If you…

Q: Which of the following is not an element of the income statement? Revenues. Liabilities. Expenses.…

A: Business companies compile income statements in order to determine how much gross profit or net…

Q: fer from o

A: Revenue should be recognised when it is generated, not when it is received, according to the revenue…

Q: What is the difference between operating and non –operating income?

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: What's the difference between credit and debit in accounting terms

A: There are three golden principal of accounting.

Q: Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does…

A: (a) The income statement can also be called a “profit-and-loss statement" because it is a financial…

Q: How to find the net income? How to find the revenue expense?

A: Net Income Net Income is refer as the net profit or the profitability of the company. Net Income is…

Q: What is the major distinction (a) between revenues and gains and (b) between expenses and losses?

A: The major distinction between revenues and gains (or expenses and losses) depends on the typical…

Q: 1. What is accrual basis of accounting? How is it applied in terms of revenues and expenses?

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: How does EVA differ from accounting net income?

A: Economic Value Added and accounting net income are the methods of businesses that can be used to…

Q: How a profit is determined a) under the cash basis of accounting and b) the accrual basis of…

A: a) Under cash basis of accounting revenues and expenses only includes where there is a cash exchange…

Q: Please answer clearly and thoroughly1) On the RE Statement it shows the Net Income, if there is a…

A: Step1: Statement of retained earnings. We have,Statement of retained earnings show the beginning…

Q: what is the revenue and gross profit

A: Revenue is the amount or income which has been earned during particular period of time. Gross profit…

Q: whats the difference between an expense and liability according to accounting?

A: Accounting: Accounting is defined as recording, summarizing and classifying the financial…