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With the assignment of profit and loss account, let’s discuss the need of such account:
Purpose/Need of Profit and Loss Accounts
The profit and loss accounts which are major distribution and transactions of company revenue generation along with losses tackled, such accounts helps in providing the exact details of judgment of amount of profit gathered and loss tacked by the firm. Profit and loss accounts for a corporate is mandatory function by the financial official to state and update on time to time to judge the element of growth for the company.
After understanding the purpose, let’s discuss the importance
Importance of Profit and Loss Accounts:
These are significant accounts that state the overall growth or downfall of the company by proper financial accounting statement of such accounts. With such importance, the judgment of growth becomes an easier aspect for any corporate to understand and work along the major weakness and strengths in details.
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