Why Profit and Loss Statement??

[john.h]

Hi, how would u explain, why we do a profit and loss statement?
Also is there any other theory questions on profit and loss statement

thanks for helping

[Akirus]

If they asked that, it'd be a stupid question. Reporting profit is essentially the purpose of the entire damn accounting system.

[mba]

The presentation of reports is based on the Understandability accounting characteristic.
Sure we could just give users of financial data the records such as the CRJ, CPJ, Gen Journal etc. but this would not be very clear or useful as many people would have no idea how to read these. Therefore, we present them in report format so they are understandable for non-financial literate users to view and make rational decisions based on this processed information.
MBA.

[john.h]

Thank you 

[Akirus]

Just going to throw this out there, since I'm beginning to think people don't know it...

What is accounting?

It is an information system that identifies, records and communicates economic events to interested users.

[Buharrr]

it could be...accounting is the collecting recording and reporting of financial information to assist the owner in decision making..., right?

[Akirus]

it could be...accounting is the collecting recording and reporting of financial information to assist the owner in decision making..., right?

My definition is better, more specific and comprehensive ;p

[Buharrr]

it could be...accounting is the collecting recording and reporting of financial information to assist the owner in decision making..., right?

My definition is better, more specific and comprehensive ;p

lol....kk