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Small Business Accounting Software Reviews Computers Articles | May 4, 2006
Small business accounting software reviews mainly focus on contents of profit and loss account. It is also known by several other titles such as income statement, statement of earnings Joel Eriksson Ek Womens Jersey , statement of o...


Small business accounting software reviews mainly focus on contents of profit and loss account. It is also known by several other titles such as income statement, statement of earnings, statement of operations and profit and loss statement. While the balance sheet, as a stockposition statement, reveals the financial condition of a business at a particular point of time Zach Parise Womens Jersey , the profit and loss account portrays, as a flow statement, the operations overduring a particular period of time. The period of time is an accounting period.


Since the purpose of every business firm is to earn profit, the operations of a firm in a given period of time will truly be reflected in the profit earned by it. Thus, the income statementprofit and loss account of a firm reports the results of operations in terms of incomenet profit in a year. The profit and loss account can be presented broadly in two forms: the usual account form and step form.


In operational terms Mikko Koivu Womens Jersey , the accounting report that summarizes the revenue items, the expense items and the difference between them (net income) for an accounting period is called the income statement. There are three contents of the profit and loss account: revenues, expenses and net incomeprofitloss.


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