Accounting - Preparation of reports
Preparation of reports
The cash report, the Profit and Loss statement, and the balance sheet are
regarded as 'position statements'.
Position statements reflect:
For example, statements of receipts and payments
Profit and Loss
When preparing or reconstructing a record to determine dollar amounts it
is important that the relevant amount go to the correct position statement.
In the example above:
* $6000 = cash position. It is the amount paid
* $4000 = profit position. It is the amount incurred
* $2000 = wealth position. It represents a future benefit
Previous | Next