The main Intangible Assets that appear on Balance Sheet include brands, trademarks, patents, copyrights and goodwill.
https://www.superbusinessmanager.com/intangible-assets-in-details/
Whereas Profit and Loss Account (P&L Account) covers the whole financial year, Balance Sheet is a statement of the estimated value of the company at one moment in time — usually at the end of the quarter or at the end of financial year.
The information contained in Balance Sheet can be used in a number of ways.
https://www.superbusinessmanager.com/balance-sheet-evaluation/
Balance Sheet is a snapshot of the business’s financial position on the particular date when Balance Sheet was prepared. It is an accounting statement that records the assets, liabilities and owners’ equity of a business at a particular date at a certain point in time. https://www.superbusinessmanager.com/the-main-parts-of-balance-sheet/
All companies must keep correct accounting records. They need to keep detailed records of purchases, sales and all the other financial transactions that happened in the particular quarter or year. These financial records of business transactions are needed to provide essential information to stakeholder groups both inside and outside the organization.
https://www.superbusinessmanager.com/profit-and-loss-account-pl-account-evaluation/
Businesses usually have two types of spending such as Revenue Expenditure and Capital Expenditure. Here is an example how accountants can correctly record these two types of spending into Final Accounts.
As a business manager, you can improve Net Profit of your business by decreasing Indirect Costs (Overheads).
https://www.superbusinessmanager.com/how-to-improve-net-profit/
As a business manager, you can improve Gross Profit of your business by either increasing Sales Revenue or decreasing the cost of production.
https://www.superbusinessmanager.com/how-to-improve-gross-profit/
Profit and Loss Account (P&L Account), or an income statement, contains financial data which business stakeholder groups find extremely useful. It shows the Sales Revenue, all business costs and profit or loss of a business over a given period of time. It is one of the Final Accounts.
Profit and Loss Account (P&L Account) is produced both for internal use and external use. Internally, managers need timely access to as much financial information as possible to make important business decisions. Externally, current shareholders and potential new investors need information to assess the performance of their investment, or make decisions whether to invest in this company or not.
https://www.superbusinessmanager.com/the-main-parts-of-profit-and-loss-account-pl-account/
Balance Sheet gives different stakeholders useful information about the financial status of a business. Mainly, what the business owns and how did the business pay for it. A business can pay for what it owns either using its own money or using borrowed money.
https://www.superbusinessmanager.com/the-importance-of-balance-sheet/
Profit and Loss Account (P&L Account), or an income statement, contains financial data which business stakeholder groups find extremely useful. It shows the Sales Revenue, all business costs and profit or loss of a business over a given period of time.
Earning Profit is the main objective of all businesses in the private sector of the economy. However, even for non-profit organizations and those in the public sector, it is important to make a surplus in order to survive and keep operating.
Profit creates an incentive for most businesses to do well. After all, if a business does not earn Profit, or surplus, it would struggle to survive.
https://www.superbusinessmanager.com/the-importance-of-profit-and-loss-account-pl-account/
Jerry Grzegorzek
Founder & Editor-in-chief at SuperBusinessManager.com. Super Business Manager provides business resources for better decision making to empower human beings.
