accounts Flashcards
1
Q
what is a profit and loss account
A
summarizes the revenues, costs, and expenses during over a period of time. cost of goods sold
2
Q
What is a balance sheet account
A
statement of the assets, liabilities at point in time - short term liabilities - loan
3
Q
what is a cash flow
A
shows the movement of cash e.g employs wages
4
Q
what is the difference between a cash flow and balance sheet
A
If your business is making money or losing it. Cash Flow statement tracks all the movement of your cash