| This article provides useful, detailed information | | | | summarizes the revenue items, the expense |
| about Small Business Accounting Software | | | | items and the difference between them (net |
| Reviews. | | | | income) for an accounting period is called the |
| Small business accounting software reviews | | | | income statement. There are three contents of |
| mainly focus on contents of profit and loss | | | | the profit and loss account: revenues, expenses |
| account. It is also known by several other titles | | | | and net income/profit/loss. |
| such as income statement, statement of | | | | Revenues can be defined as the income that |
| earnings, statement of operations and profit and | | | | accrues to the firm by the sale of goods/services |
| loss statement. While the balance sheet, as a | | | | assets or by the supply of the firm\'s resources |
| stock/position statement, reveals the financial | | | | to others. Alternatively, revenues mean the value |
| condition of a business at a particular point of | | | | that a firm receives from its customers. The |
| time, the profit and loss account portrays, as a | | | | value/income can arise from three sources: sale |
| flow statement, the operations over/during a | | | | of products/goods/services, supply of firm |
| particular period of time. The period of time is an | | | | resources to others, and sale of assets like |
| accounting period. | | | | production plants, investments, and so on. The |
| Since the purpose of every business firm is to | | | | cost of earning revenue is called expenses. An |
| earn profit, the operations of a firm in a given | | | | important item of expense appearing in the profit |
| period of time will truly be reflected in the profit | | | | and loss account is the cost of goods sold. The |
| earned by it. Thus, the income statement/profit | | | | difference between revenues and expenses is net |
| and loss account of a firm reports the results of | | | | profit. The profit and loss account may also show |
| operations in terms of income/net profit in a year. | | | | the appropriation of the net profits between |
| The profit and loss account can be presented | | | | dividends paid to the shareholders and retained |
| broadly in two forms: the usual account form and | | | | earnings/ amount transferred to reserves and |
| step form. | | | | surplus. |
| In operational terms, the accounting report that | | | | |