How To Read A Profit & Loss Statement

Introduction

1. The Income Statement—An Introduction

• What is a Profit and Loss Statement?

• Importance of Income Statement

2. Accounting Principles

• Accounting Period

• Realization Principle

• Accrual Principle

• Matching Principle

• Assets that Become Expenses

3. Measurement of Income

• Revenue

• Expenses

• Classification

• Different Accounting Period Items

4. Preparation of Income Statement

• Account

• Various Types of Profit

• Form and Contents of Profit and Loss Account

·         Non-Operating Income/Other Income

Similar to the earlier edition, various intriguing portions have been dealt with through amusing conversations infused