Monday, July 9, 2012

Income Statement or Profit & loss


I think everyone appreciated the definition of sales/income and expenses but somebody might ask “when can I use these two accounting terminology in my business or to my future business”. Simply deduct the total expenses to the total sales/income and you will get your “net income/(loss)”.

Net income/(loss) in business means what remains after subtracting all the costs from total sales/revenues. Every entrepreneur loved to see of course net income instead of loss during month-end or even quarterly and yearly in their financial statement

Net income is one of the most important indicators of the financial health of a business.

Happy to send more information/topics to help and guide you.

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