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

How many types of GST in India 

Four types of GST in our India. 1.SGST 2.CGST 3.UGST 4.IGST
Subhash Chandra Thakur
Define Matrix.
Collection of numbers arranged in rows and columns.
Deepti

What do you mean by principal of conservatism in accountancy?

The conservatism concept is a concept in accounting which refers to the idea that expenses and liabilities should be recognised as soon as possible in a situation where there is uncertainty about the possible...
Akash

What is the difference between Bad debts and bad & doubtful debts. What are the legal compliances for the provisions for doubtful debts and bad debts recovered after being written off. 

Both are pretty much same.. Bad debts amount to be transferred to P/L a/c (dr side) Baddebts recovered P/L credit side as income Provision on doubtful debts to be deducted from debtors in balance sheet..
Suneha Sharma
1 0
7

I have registered as a home tutor but i am not getting any messages.

PLEASE take premium membership of UrbanPro you will definitely received home tuition enquiry.
Netti Surya Prakash Rao
0 0
6

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

Ask a Question

Related Lessons

Generally Accepted Accounting Principles (GAAP)
GAAP is the common set of accounting principles, standards and procedures that organizations use to make accounting transactions and compile their financial statements. GAAP is a combination of: Commonly...

Financial Accounting
Accounting is the art of recording, classifying, summarising in a significant manner regarding money, transaction & events which are at least in part financial interpreting the result thereof. (AICPA...

Rules of debit and credit
Personal account: Debit the receiver and credit the giverReal account: Debit what comes in and credit what goes outNominal account: Debit all expenses & losses and credit all incomes & gains

For CBSE PUC Accountancy- How to Identify Revenue vs Capital Expenditures for a Business Organisation
Dear Students, Identification of Revenue and Capital natured expenditure is essential for us. It is the base for many of the chapters in your Accountancy Syllabus. Let us understand these terms with several...

Introduction To Accounting: Part 4: Accounting Cycle
Remember when we started learning English? We started off by learning Alphabets, then we joined Alphabets to form Words, then we joined Words to form Sentences, then we joined Sentences to form Paragraphs,...

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