How Profit and Loss account, Balance Sheet and Cash flow statement are different from each other? Usage of theses.

Question

Accepted Answer

Profit and Loss account, Balance Sheet, and Cash flow statement are different financial statements used for different purposes.

Profit and Loss account shows the company's revenues, expenses, and net profit or loss over a specific period.
Balance Sheet provides a snapshot of a company's financial position at a specific point in time, showing its assets, liabilities, and shareholders' equity.
Cash flow statement tracks the inflow and outflow of cash in a company, providing information about its operating, investing, and financing activities.
Profit and Loss account helps assess the company's profitability and performance.
Balance Sheet helps evaluate the company's financial health and solvency.
Cash flow statement helps analyze the company's liquidity and cash management.
These statements are used by investors, creditors, management, and other stakeholders to make informed decisions and assess the company's financial performance and position.

Accepted Answer

Cash ledger is the main part of accounts, it will show only cash flow , and another way balance sheet will show the health of company

Accepted Answer

All different show different financial information. P&l and balance sheet are prepared using accrual basis, while cash flow is prepared on cash inflow and outflow basis.

Accepted Answer

All different show different financial information. P&l and balance sheet are prepared using accrual basis, while cash flow is prepared on cash inflow and outflow basis.

How Profit and Loss account, Balance Sheet and Cash flow statement are different from each other? Usage of theses.

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