THE PROFIT AND LOSS ACCOUNTS

The profit and loss account is also known as the income statement.

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• FALSE

The finnal accountas are divided into three parts: the trading account, the profit and loss account, and the appropriation account.

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• FALSE

problems would immediately arise if accounts were not kept.

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• FALSE

Is the business able to repay the loan to the bank? affect:

• Managers

• bank

• workers

§Final accounts are financial statements compiled by businesses at the end of a particular accounting period such as the end of a fiscal or trading year.

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• false

Final accounts are financial statements compiled by businesses at the end of a particular accounting period such as the end of a fiscal or trading year.

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• FALSE

The profit and loss account shows the trading position of a business at the end of a specified accounting period.

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• FALSE

.................................. refers to the final section of a Profit and loss account and shows how the net profit after interest and tax is distributed, i.e.dividends to shareholders and/or retained profit kept by the business.

• The appropriation account

• Retained profit

• Balance sheet

Is there a universal method to present the final accounts?

• YES

• NO

COGS (or cost of sales when referring to services) is workedout by the formula:

• = Opening stock + Purchases - Closing stock

• = Sales revenue - Cost of goods sold