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. 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 Know Total Expenses. Profit and loss account gives the actual information about indirect expenses.
Answers & Comments
Answer:
1. It provides information required to determine tax obligations.
2.For Information on Net Result; They have actual information about net Profit or a Net loss of the business for an accounting period.
For Knowledge of Total Expenses; They give actual Information about indirect expenses.:)
Step-by-step explanation:
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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