Profit and Loss a/c

What is the importance of the profit and loss account? What is the most important item of the P&L A/C (asked in a Citibank interview)

Questions by Rashmi_Nair   answers by Rashmi_Nair

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akshayparhi

  • Aug 13th, 2008
 

A company's profit and loss account shows revenue, expenditure and the profit and/or loss resulting from operations for a given 'financial year'. So it is necessory for the company to know the profit and loss after deducting / adding all direct and indirect expenses or income.

Akshay Parhi

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sivappan

  • Mar 17th, 2009
 

Net profit is shown in the liability side because company is liable to pay that much amout to owner/owners of the company.

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