Accounting Principles

Question 1

What are the 3 accounting documents for a firm?

Answer 1

1) Profit / Loss Statement
2) Balance Sheet
3) Cashflow

Question 1

What two accounting documents are statutory?

Answer 1

1) Profit / Loss Statement
2) Balance Sheet

Question 2

What is the difference between a profit / loss statement and balance sheet?

Answer 2

Balance sheet is a snapshot, Profit / Loss is typically over a year.

Balance sheet is summary of capital, current assets and liabilities.