I'll give the brainliest answer for the best answer: . . . . . . Direction: Answer the questions concisely: 1. What is the importance of Profit and Loss account in business? 2. What are the benefits of Profit and Loss account in business?
1. It provides information about an enterprise's income and expenses, which result in net profit or net loss. It helps a businessman evaluate the performance of an enterprise and provides a basis for forecasting future performance.
2. Your Profit and Loss statement will: Give you a breakdown of all revenues and relevant costs and expenses over a given historic period of time – so you know what you've earned and what you've spent.
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Answer:
1. It provides information about an enterprise's income and expenses, which result in net profit or net loss. It helps a businessman evaluate the performance of an enterprise and provides a basis for forecasting future performance.
2. Your Profit and Loss statement will: Give you a breakdown of all revenues and relevant costs and expenses over a given historic period of time – so you know what you've earned and what you've spent.