What are the definitions and key components of a profit and loss statement, and a balance sheet?

Question

Accepted Answer

A profit and loss statement shows a company's financial performance over a specific period, while a balance sheet provides a snapshot of a company's financial position at a specific point in time.

Profit and Loss Statement: Shows revenues, expenses, and net income or loss for a specific period (e.g. quarterly or annually)
Balance Sheet: Lists assets, liabilities, and shareholders' equity at a specific point in time to show the company's financial position
Key components of a profit and loss statement include revenue, cost of goods sold, gross profit, operating expenses, net income
Key components of a balance sheet include current assets, non-current assets, current liabilities, non-current liabilities, and shareholders' equity

What are the definitions and key components of a profit and loss statement, and a balance sheet?

Top Wolters Kluwer ELM Solutions Operations Associate interview questions & answers

Popular interview questions of Operations Associate

Top HR questions asked in Wolters Kluwer ELM Solutions Operations Associate