It is very important to format a profit and loss statement so that it is appropriate to the business being conducted. Title section Name of…

A profit and loss statement, otherwise known as an income statement, is a summary of a company’s profit or loss during any one given period…

Gross profit/loss is calculated by retailers and wholesalers to determine whether the basic mark-up on cost is sufficient cover operating costs. Retailers and wholesalers use…

This section of the report shows the direct cost of stock purchased and sold, and any related buying expenses incurred during the period. Other buying…

Under this heading are included items of operating revenue, normally of a minor nature, which are earned in addition to the main source of revenue,…

These are expenses required to operate the business for the purpose of earning revenue. It is common for retail and wholesale businesses to classify their…

Sales (all on credit) $500,000 Cost of Goods Sold 380,000 Gross Profit 120,000 Operating Expenses Selling Expenses 35,000 Administrative Expenses 45,000 Total Operating Expenses 80,000…

A balance sheet is a snapshot of a business’ financial condition at a specific moment in time, usually at the close of an accounting period….

(a) Name of owner As with the profit and loss statement, a balance sheet must show the name of the owner and, where applicable, the…

Assets are subdivided into current and long-term assets to reflect the ease of liquidating each asset. Cash, for obvious reasons, is considered the most liquid…