Answers.com > Wiki Answers > Categories > Business & Finance > Business and Industry > Business Accounting and Bookkeeping > What are the limitations of profit and loss account?

What are the limitations of profit and loss account?

Answer:

"What are the limitations of profit and loss account?"

First answer by ID3262433242. Last edit by ID3262433242. Question popularity: 3 [recommend question].

[report abuse]

Can you answer these Business Accounting and Bookkeeping questions?

	Why maintain control accounts?	Answer it!
	What will increase one asset and decrease another asset without affecting liabilities or owner's equity?	Answer it!
	What are the problems involved in the use of profit maximization as the goal of the firm?	Answer it!
	How does current assets and current liabilities work together?	Answer it!
	Why the extended trial balance is used to make adjustments to accounts?	Answer it!

What is Profit and loss Account and its contents?
Profit and loss is nothing but an statements which shows the net profit and net loss during a period.
Difference between Profit and loss account and Profit or loss account?
No difference. It is just a matter of symantics (different ways to say the same thing).
When and why profit and loss account is dr?
Normally you'd expect it to be CR as it's an accumulation of profit over the years. However, dividends (drawings if not a company) will reduce the profit and loss account. Combine that with a few...
Suspense account is a profit or loss?
It's neither. The suspense account is a balance used to force the trial balance to agree. Once the errors have been located the respective amounts are debited or credited out of the suspense account...
What is Profit and loss Account?
There is no "Profit and loss account". There is a profit and loss statement, the income statement. The income statement is closed out to Retained Earnings (shown on the balance sheet), so I guess you...