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Income statement same as p l. The balance sheet shows assets liabilities and owner s equity. Individuals tend to confuse income statements and profit and loss accounts. Accounting can be difficult to maintain in any size business. The income statement might be the same as the p l but it is different from the other financial statements.
A p l statement often referred to as the income statement is a financial statement that summarizes the revenues costs and expenses incurred during a specific period of time usually a fiscal. Well actually there is a difference between profit and loss account and statement of profit and loss income statement in p l a c we end with net profit loss of a business organisation this net profit arrived is added to capital in balance sheet. Anonymous i think income statement is the form that is used for non profitable organizations like charities and organizations where the income is not coming from sales or revenue or any commercial or trading activity. The terms are.
There are three main financial statements including the income statement balance sheet and cash flow statement.
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