Answer:

1. What is the importance of Profit and Loss account in business?

The profit & loss account 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. What are the benefits of Profit and Loss account in business?

Advantages Of Profit And Loss Account

• To Obtain Net Result. Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period. ...
• To Obtain Net Result. Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period. ...To Know Total Expenses. Profit and loss account gives the actual information about indirect expenses.
• To Obtain Net Result. Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period. ...To Know Total Expenses. Profit and loss account gives the actual information about indirect expenses.Determination Of Ratio. ...
• To Obtain Net Result. Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period. ...To Know Total Expenses. Profit and loss account gives the actual information about indirect expenses.Determination Of Ratio.
• Controlling