Accounting - Preparation of reports
Preparation of reports
The cash report, the Profit and Loss statement, and the balance sheet are
regarded as 'position statements'.
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
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