Show Me the Bottom Line
Figure 2.1 The profit and loss statement
The profit and loss statement is the accounting report that most business people understand. Put simply, it is the statement that is designed to match expenses to revenue in a given period of time in order to determine if the business is making a profit or loss.
The issue of course is that at best it is a theory. How many times have you heard of a business that is making profit and yet there is no money. The reality is that the profit and loss can be manipulated by changing the timing and manner in which transactions ...
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