Which statement is prepared to know the profitability of the business?

Asked by Last Modified  

Follow 7
Answer

Please enter your answer

Tutor with 4 yrs of experience in accounting and economics

Profitability of a business entity can be estimated through trading p&l account. Where trading account states the gross profit and p&l account states the net profit earned by the entity.
1 Comments

No.1 in Accounts coaching

Income statement i.e. trading a/c & profit & loss a/c
Comments

Income statement i.e trading and profit n loss account is the only statement which shows 'profitability' for a given period of time.
Comments

Tutor

Profit and loss account
Comments

Tutor

Profit and loss account
Comments

Tutor

Profit and loss account
Comments

Tutor

Trading and profit and loss account
Comments

TUTOR, Prefer online one-to-one private classes

Income statement
Comments

View 6 more Answers

Related Questions

Why are rules of debit and credit same for liability and capital?
According to the accounting entity concept, business is seperated from its owner.So the investment made by the owner (ie capital) is the fund that is to be repaid to the owner itself, at the very last...
Sanjay
0 0
5

What will be the effect of change in income on giffin goods and normal goods ? 

Giffen goods are a special kind of inferior products in which demand increases when price increases. But in the case of income changes, there's an inverse relationship between market and income. With an...
Suneha Sharma
0 2
7
What is the difference between Cash & Cash Equivalent?
1. Cash means Paper money , coins , Money order etc But, Cash Equivalent means Highly Liquidable Securities 2. Cash has not any Time period . It is Demand Receipt But , Cash Equivalent Take some time...
Madhav

How to become a tutor in urbanpro? 

 

TO BECOME A TUTOR IN URBON PRO YOU HAVE DOWNLOAD THE URBAN PRO TUTOR APP FROM PAY STORE . SIGN IN WITH DETAILS . CREATE A PROFILE WHICH WILL ACT AS . ADD VERFICATION DOCUMENTS AND ALL NECESARY DETAILS . TO CONTINOU TUTOR HAVE TO LOGIN TO THE PORTAL
Kiruthiga

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons


3 GOLDEN RULES OF ACCOUNTING
ACCOUNTANCY- 3 GOLDEN RULES PERSONAL AC DEBIT the RECEIVER CREDIT the GIVER REAL AC DEBIT what COMES IN CREDIT what GOES OUT NOMINAL AC DEBIT all EXPENSES AND LOSSES CREDIT all INCOME AND GAINS

Accruals Accounting
Accruals in Accounting are the expenses or revenues that have been recorded by the firm but not yet realised. In simple terms, they are the financial transactions already estimated in the current accounting...


What are Reserves & Provisions? Lets understand in detail-
Provisions:There are some expenses and losses which are specific to incur, but their amount cannot be known with certainty as they are not yet incurred. It is necessary to make provision for such certain...
A

Recommended Articles

E-learning is not just about delivering lessons online. It has a much broader scope that goes beyond manual paper or PowerPoint Presentations. To understand the reach of E-learning and how the whole process works in developing the Educational system, we will discuss a few points here. Let us find out how this new learning...

Read full article >

Appearing for exams could be stressful for students. Even though they might have prepared well, they could suffer from anxiety, tension etc. These are not good for their health and mind. However, following a few exam preparation tips can save them from all these and help them to score good marks. Let’s find out all...

Read full article >

With the mushrooming of international and private schools, it may seem that the education system of India is healthy. In reality, only 29% of children are sent to the private schools, while the remaining head for government or state funded education. So, to check the reality of Indian education system it is better to look...

Read full article >

While schools provide formal education to the children, the home is where they start learning about things informally. Parents think that schools will take the initiative to educate their children. Well, this is partially true, as parents also play an essential role in bringing up their child. For the development of particular...

Read full article >

Looking for Class 11 Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you