- Created by: rwoods9krx
- Created on: 31-08-19 12:08
Profit or Loss?
A companies profit or loss can be shown by an income statement, which is a second primary financial report.
This report gives a summary of totals of all the income and expense items in a business.
If the total income is greater than the total expenses then this positive difference is referred to as a Profit
If the total income is less than the total costs this negative difference is referred to as a Loss
Cash flow of an enterprise is summarised in a cash flow statement. This report summarises the cash coming in and out of a business.
This statement is compulsory for larger companies but not required for sole traders.